The Philippine Competition Commission (PCC) said parties engaged in mergers and acquisitions (M&A) that fall under its regulatory ambit may voluntarily submit “remedies” to address potential competition issues that could results from conclusion of the transaction.
The parties involve may submit the proposal “anytime during the conduct of the merger review,” the PCC said, unveiling at the same time its Guidelines on Merger Remedies, which outlines the agency’s approach when assessing the merging parties’ proposals to address competition concerns due to the proposed M&A.
The guidelines were approved last May.
“The guidelines contain guidance on the design, selection, and implementation of merger remedies. Under the PCC’s merger rules, transacting parties may offer remedies to address competition concerns, which they may propose,” the PCC said.
Without providing specific measures on how companies will structure their proposals, the PCC said remedies under the guidelines must be designed in such a way that the proposal addresses the competition concerns identified during the merger review and “should clearly demonstrated that the remedy will address the competition harm that was raised.”
“Remedies must be effective in addressing the harms to competition. The proposed remedies should address both the substantial lessening of competition and its adverse effects,” the PCC said.
The PCC also said the remedies proposed “must be commensurate to the harm being addressed,” while keeping the option to impose additional conditions when needed.
