Statement On The Opening Of Phase II Review And Call For Comments
On The Proposed Acquisition By AHCHI Pharma Ventures Inc.
Of Shares Of Joleco Resources Inc.


Stakeholders and interested parties are invited to submit comments on the impact to the market and to competition of the proposed acquisition by AHCHI Pharma Ventures Inc. (“Ayala Pharma Ventures”) of shares of Joleco Resources Inc. (“Joleco Resources”), which is currently under review. Comments may include possible effects on the prices, quality and range of products and services being offered by the merging parties.

Parties to the Transaction

The acquiring entity, Ayala Pharma Ventures, is a subsidiary of Ayala Healthcare Holdings, Inc. (“AC Health”), Ayala Corporation’s holding company which invests primarily in the healthcare industry. Ayala Pharma Ventures operates Generika Drugstore, a retail chain of drugstores operating nationwide. Ayala Pharma Ventures’ ultimate parent entity is Mermac, Inc.

The acquired entity is Joleco Resources. It operates St. Joseph Drugstore, which is also a retail chain of drugstores, operating in Regions 1, 3, and the Cordillera Administrative Region.

Abstract of the Transaction

Ayala Pharma Ventures shall acquire 49% of the total outstanding capital stock of Joleco Resources (the “Transaction”).

Review of the Transaction

During Phase I review, the Mergers and Acquisitions Office (“MAO”) found some indication of possible adverse effects of the Transaction on competition and, thus, recommended to proceed to Phase II review.

In Phase II review of the Transaction, the MAO shall conduct a more detailed and extensive assessment to determine whether the Transaction will lead to a substantial lessening of competition, particularly in the following markets:

  1. Retail sale of pharmaceutical products in drugstores in at least 28 localities;[1] and
  2. Retail sale of non-pharmaceutical products in drugstores in at least 28 localities[2]

More specifically, the MAO shall conduct a more in-depth assessment of possible harm to consumers post-Transaction, such as likely increase in prices and/or likely decrease in the quality or range of products and services offered by the merging entities.

Commencement of Phase II Review

The MAO issued a Notice to Proceed to Phase II review and Request for Information (“RFI”) to the Parties of the Transaction on 22 March 2024. Phase II Review of the Transaction commenced on 23 March 2024.

Submission of Comments

Stakeholders’ comments on these markets are critical to the MAO’s ongoing assessment. Comments may be submitted until 17 May 2024 via e-mail to with subject title “Comments on Generika and St. Joseph Drugstore”; via mail to Philippine Competition Commission located at 25th floor, Tower 1, Vertis North Corporate Center, North Avenue, Quezon City 1105; or by answering the online form in this link.

[1]These localities are 1) Agoo, La Union, 2) Alaminos, Pangasinan, 3) Asingan, Pangasinan, 4) Baguio City, 5) Bangued, Abra, 6) Basista, Pangasinan, 7) Bauang, La Union, 8) Binalonan, Pangasinan, 9) Candon City, Ilocos Sur, 10) Dagupan, Pangasinan, 11) La Trinidad, Benguet 12) Laoag City, Ilocos Norte, 13) Lingayen, Pangasinan, 14) Malasiqui, Pangasinan, 15) Manaoag, Pangasinan, 16) Mangaldan, Pangasinan, 17) Mangatarem, Pangasinan, 18) Rosales, Pangasinan, 19) Rosario, La Union, 20) San Carlos City, Pangasinan, 21) San Fabian, Pangasinan, 22) San Fernando City, La Union, 23) San Nicolas, Pangasinan, 24) Sinait, Ilocos Sur, 25) Tayug Pangasinan, 26) Urdaneta, Pangasinan, 27) Vigan City, Ilocos Sur, and 28) Villasis, Pangasinan.

[2] Id.