San Miguel's acquisition of Holcim Philippines undergoes further review

The Philippine Competition Commission (PCC) is conducting a further review of the US$2.15bn acquisition of Holcim Philippines by San Miguel Corp. As the initial 30-day review of the deal ended on 22 August, the PPC will now proceed to the 60-day Phase Two review.

“Cement is a commodity with low product differentiation where brands undergo the same quality standards. While the transaction is national in scope, the initial review shows that geographic markets by region affect retailers and consumers differently in terms of production, distribution and price,” PPC said in a statement.

The commission noted that the acquisition may affect the market concentration of relevant products in certain regions of the country. The second phase of the review requires more detailed analysis and is hoped to determine whether the move will result in reduced competition.