DoubleDragon Corp. can now proceed with its intended acquisition of shares in MerryMart Consumer Corp. after securing clearance from the Philippine Competition Commission ahead of the mandated Phase 1 review period.
The PCC reported on Thursday that its Mergers and Acquisitions Office (MAO) found that the transaction is not likely to result in a substantial lessening of competition.
Potential impact on competition
The agency said MAO assessed the potential impact of the transaction on competition in the markets for leasing commercial spaces and warehouse facilities to grocery stores and convenience stores in the cities and municipalities where CityMall and CentralHub operate.
The review covered both upstream markets, which include the supply of commercial spaces and general warehouse facilities, and downstream markets, including grocery stores and convenience stores.
Consultations
Consultations were conducted with key industry stakeholders, including major retail chain competitors, customers, and relevant government agencies.
The PCC said that with strong competitors active in 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, which could limit consumer choice in retail.
“With this clearance, the PCC affirms its commitment to safeguarding competitive markets while ensuring that mergers and acquisitions proceed in ways that allow businesses to pursue growth opportunities that benefit consumers and the broader economy,” the commission said.
Diversified real estate developer
DoubleDragon is a diversified real estate developer with core operations spanning retail complexes, office spaces, industrial facilities, and hospitality ventures.
Its subsidiaries include CityMall Commercial Centers, which operates malls across the country, and CentralHub Industrial Centers, which runs warehouse complexes.
MerryMart, on the other hand, is a fast-growing retail chain focused on consumer goods, operating supermarkets and convenience outlets nationwide.
