THE Philippine Competition Commission (PCC) has cleared DoubleDragon Corp.’s acquisition of a stake in MerryMart Consumer Corp., paving the way for the property developer’s entry into the retailing business.
In a statement on Thursday, the antitrust body said it had approved DoubleDragon’s plan to purchase 35 percent of MerryMart under a P1.28-billion deal that was announced in April last year.
The PCC said its Mergers and Acquisitions Office assessed the potential impact on competition in markets for the lease of commercial spaces and warehouse facilities to grocery stores and convenience stores in areas where DoubleDragon subsidiaries City Mall and Central Hub operate.
The agency said it conducted consultations with industry stakeholders, including major retail chain competitors, customers and relevant government agencies, and found that the transaction was not likely to result in a substantial lessening of competition.
“With strong competitors active at both upstream and downstream markets, DoubleDragon and MerryMart remain effectively constrained from engaging in input foreclosure (restricting rivals’ access to spaces or facilities) and customer foreclosure (limiting consumer choice in retail)”, the PCC said.
DoubleDragon, a real estate firm chaired by Edgar Sia II and Tony Tan Caktiong, focuses on retail complexes, office spaces, industrial hubs, and hospitality.
The company’s key subsidiaries include CityMall Commercial Centers Inc., which operates a network of community malls, and CentralHub Industrial Centers Inc., a provider of industrial warehouse complexes.
MerryMart, which is owned by Sia, operates a nationwide chain of supermarkets and convenience stores.
DoubleDragon shares rose P0.17, or 1.89 percent, to P9.17 each on Thursday, while those of MerryMart surged 9.33 percent, adding 3.5 centavos to close at 41 centavos apiece, amid a 1.15-percent advance for the benchmark Philippine Stock Exchange index.