THE Philippine Competition Commission (PCC) said it cleared the proposed acquisition by Aramco Asia Singapore Pte. Ltd. of a 25% stake in Unioil Petroleum Philippines, Inc. and Unioil Energy Pte. Ltd.
In a statement, the regulator said it does not see the transaction resulting in a substantial reduction of competition in the relevant markets.
The PCC noted that “the parties have limited shares, there is substantial competition from other established players, and the entry of new players is likely, timely, and sufficient due to low barriers to entry.”
Aramco Asia is an affiliate of Saudi Arabian Oil Co. (Saudi Aramco) and renders sales, marketing, procurement, and logistics services out of Singapore.
Unioil Petroleum is a fuel retailer while Unioil Energy is a trading company that ships in gasoline and diesel to the Philippines.
In February, Aramco Asia and Unioil Petroleum announced a definitive agreement for a stake sale, marking Saudi Aramco’s return to the Philippine market.
Saudi Aramco used to own 40% of Petron Corp. but divested in 1994.
Under the Philippine Competition Act, the PCC is tasked with reviewing mergers and acquisitions (M&As), including foreign transactions, that meet notification thresholds, to ensure that the deals do not harm competition.
Earlier this year, the PCC raised the thresholds for notifiable M&A deals to a size of party of P8.5 billion and a size of transaction of P3.5 billion. — Justine Irish D. Tabile