PCC OKs AC Logistics” acquisition of majority stake in Air21

Ayala Corp.’s wholly-owned subsidiary AC Logistics Holdings Corp. has secured the approval of the Philippine Competition Commission (PCC) to acquire a majority stake in Air 21 Holdings Inc. (AHI) owned by former Customs chief Alberto Lina.

In a statement released Wednesday, the PCC said the transaction is not likely to result in “substantial lessening of competition,” upon recommendation of its Mergers and Acquisitions Office.

“This is because post-transaction, the merged entity is unlikely to gain a dominant market position due to its insignificant market shares in the relevant markets,” the statement read.

The PCC added that “sufficient” competitive pressures or constraints will remain from other market participants after the acquisition, citing competition in the nationwide and global markets.

“Likewise, it is highly unlikely that the transaction could effectively limit access of other players to a significant customer base in the same relevant markets,” the anti-trust watchdog said.

The Philippine Competition Act mandates the review of all business merger transactions valued at P2.4 billion and above to protect competition in the market and prohibit anticompetitive behavior.

Under the transaction, AC Logistics will acquire a 60% interest in AHI through subscribing to 2.6 billion primary and secondary shares for P6 billion.

It also provides for the consolidation of Lina’s equity interest in Airfreight 2100 Inc., Air 2100 Inc., U-Freight Phils. Inc., U-Ocean Inc., Cargohaus Inc., LGC Logistics Inc., Waster & Resources Management Inc., and Integrated Waster Management Inc. under UHI.

“The partnership with AHI gives AC Logistics an end-to-end logistics platform that is capable of serving the diverse supply chain requirements of high-growth industries and complements Ayala’s initial foray in logistics through Entrego,” Ayala Corp. president and chief executive officer Fernando Zobel de Ayala said in November 2021.

Shares in Ayala Corp. closed Wednesday up by P4.50 or 0.66% at P683.00 apiece versus Tuesday’s finish of P678.50.—AOL, GMA News



PCC OKs AC Logistics” acquisition of majority stake in Air21
Source: News Panda Philippines

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