The Philippine Competition Commission on Tuesday clarified that the Grab-Move It merger did not breach the thresholds for compulsory notification. Thus, the PCC said, the parties need not wait for its nod to consummate the deal.
In August, transport network vehicle service provider Grab Philippines announced that it has acquired motorcycle taxi firm Move It to ramp up transport services for commuters amid growing demand for more efficient mobility and logistics solutions.
“Based on an initial assessment by the PCC, Grab Philippines’ acquisition of Move It likely did not breach the thresholds for compulsory notification. Hence, the parties need not wait for approval from the PCC to consummate the transaction,” said PCC-OIC chairperson Johannes Bernabe.
He said publicly available information suggests that the parties entered the transaction when the P50-billion notification thresholds under Republic Act 11494 or the Bayanihan to Heal as One Act was in effect.
Likewise, Bernabe maintained that the publicly announced size of the transaction seems to not have breached the thresholds under the Bayanihan Law.
“However, the PCC may still launch a motu proprio review of the transaction if it finds reasonable grounds to believe that the deal will result in a substantial lessening of competition in the relevant markets,” according to Bernabe.
Light in assets
The PCC interim head also underlined that transactions in digital markets are often characterized by small tangible assets that fail to meet the triggers for mandatory review.
In addition, he said their importance and utility to consumers rank high in the Commission’s priorities to merit steadfast monitoring.
“To note, this new acquisition by Grab Philippines will not affect the company’s existing legal commitments to the PCC relating to its takeover of Uber.