The Philippine Competition Commission (PCC) is conducting a deeper review of the Metro Pacific Investments Corp. (MPIC)’s planned acquisition of Franklin Baker Co.
In a notice, the PCC said it is undertaking a Phase 2 review of the proposed acquisition by MPIC subsidiary, Metro Pacific Agro Ventures Inc. (MPAV) of Franklin Baker, one of the country’s oldest and largest manufacturers and exporters of coconut products.
‘The review focuses on how the transaction may affect competition in the markets for coconut products and the supply of mature raw coconuts in Mindanao,’ the PCC said.
A Phase 2 review is a more detailed and extensive assessment to determine whether the proposed transaction will lead to a substantial reduction in competition.
In particular, the review will look at the impact of the transaction on competition in the global manufacture of desiccated coconuts, coconut water, coconut cream, coconut milk and supply of raw coconuts within a 150-kilometer radius from the processing sites of Axelum Resources Corp. in Misamis Oriental and Franklin Baker in Davao del Sur.
The STAR first reported MPAV’s plan to buy out Franklin Baker for P1 billion to save its facilities from closing down.
In July, MPAV announced that it entered into an agreement to acquire Franklin Baker.
MPAV said the transaction would expand its agribusiness platform and reinforce its position as the leading player in the Philippines’ food-grade coconut export industry.
At present, MPAV has a 34.76-percent stake in Axelum Resources Corp.
As part of the deeper review, the PCC is seeking comments on the transaction.
In particular, the PCC said it wants insights on the transaction’s possible impact on prices, quality and range of products and services offered by the transacting parties.
The antitrust agency will be accepting comments until Oct. 10.