‘The two companies do not have horizontal overlaps — that is, they do not operate in the same line of business — and no vertical relationships, such as one company supplying goods or services to the other.’
The Philippine Competition Commission (PCC) has approved the planned acquisition by Japan-based Infroneer Holdings Inc. of all shares in Sumitomo Mitsui Construction Co. Ltd.
The transaction, cleared last 29 July but only disclosed to the press over the weekend, will be carried out through a public takeover bid that will make Sumitomo a wholly-owned subsidiary of Infroneer.
The PCC said its review showed “the two companies do not have horizontal overlaps — that is, they do not operate in the same line of business — and no vertical relationships, such as one company supplying goods or services to the other.”
No local ops
The commission also noted that “Infroneer does not have direct construction operations in the Philippines.” It concluded that the deal is unlikely to cause a substantial lessening of competition in the domestic construction and infrastructure sector.
Infroneer provides infrastructure services including planning, design, construction, and operations and maintenance. It also has subsidiaries engaged in paving, manufacturing, and sales of construction machinery, but has no operations in the Philippines.
Sumitomo operates locally through its Manila Branch and SMCC Philippines Inc., with its Manila Branch handling projects funded through official development assistance from the Japanese government.
The assessment is part of the PCC’s mandate to ensure that mergers and acquisitions do not harm competition, limit consumer choice, or restrict innovation in Philippine markets.
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