Merger Notification Thresholds Effective 01 March 2024

Pursuant to Philippine Competition Commission (“PCC”) Resolution No. 01-2024, the new thresholds for mandatory or compulsory notification of mergers and acquisition (“M&A”) transactions with PCC is at PhP 7.8 Billion for size of party (“SOP”) and PhP 3.2 Billion for size of transaction (“SOT”). To be subject to compulsory notification, the proposed transaction should satisfy both the: (1) SOP Test and the (2) SOT Test. Failure to meet any of the 2 tests exempts a transaction from the notification requirement.

The new thresholds are an increase from the SOP and SOT of PhP 7 Billion and PhP 2.9 Billion, respectively, that were in effect from 01 March 2023 to 29 February 2024.

The new thresholds do not affect notifications filed before 01 March 2024, M&As currently under review, or those already reviewed and decided upon by the PCC.

The thresholds are adjusted on the 1^st day of March of every succeeding year by the PCC based on the Philippine Statistics Authority’s (“PSA”) office estimate of the nominal gross domestic product (“GDP”) growth of the previous calendar year.

Kristin Charisse Siao

Kristin Charisse Siao (“KC”) is a Partner at Villaraza & Angangco and the head of the firm’s M&A, Competition Law, and Energy practice areas. She is a Corporate and M&A lawyer with a convergence of expertise in Tax and Competition Laws that uniquely positions her to provide seamless transaction legal support – from deal structuring, to legal due diligence, transaction documentation, closing and post-transaction integration.

Ira Mari J. Sembrano

Ira Mari J. Sembrano is a Senior Associate of the Firm. As a member of the Firm’s Corporate and Commercial Law Department, her practice primarily involves counseling companies on their regulatory compliance and providing tailored advice in the fields of general corporate and commercial law, labor and employment, data privacy and competition law, insurance, taxation, banking, financial technology, and government procurement.