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2/16/2016

PHCompetitionCommissionMemorandumCircularNo.16001|OfficialGazetteoftheRepublicofthePhilippines

MEMORANDUMCIRCULARNo._16001_
Seriesof2016.
TO:ALLCONCERNED
SUBJECT:MERGERSANDACQUISITIONSEXECUTEDANDIMPLEMENTEDAFTERTHE
EFFECTIVITYOFR.A.10667ANDBEFORETHEEFFECTIVITYOFITSIMPLEMENTINGRULES
ANDREGULATIONS
WHEREAS,RepublicActNo.10667,AnActProvidingforaNationalCompetitionPolicy,Prohibiting
AntiCompetitiveAgreements,AbuseofDominantPositionandAntiCompetitiveMergersand
Acquisitions,EstablishingthePhilippineCompetitionCommissionandappropriatingfundstherefor,
otherwiseknownasthePhilippineCompetitionActbecameeffectiveon8August2015
WHEREAS,R.A.10667vestsinthePhilippineCompetitionCommission(hereinafter,the
Commission)thepowertoreviewproposedmergersandacquisitions,determinethresholdsfor
notification,determinetherequirementsandproceduresfornotification,anduponexerciseofits
powerstoreview,prohibitmergersandacquisitionsthatwillsubstantiallyprevent,restrictorlessen
competitionintherelevantmarket
WHEREAS,theCommissionwasorganizedon1February2016and,pursuanttoR.A.10667,isin
theprocessofpreparingtheimplementingrulesandregulationsnecessaryforthefull
implementationofthelaw
WHEREAS,theimplementingrulesandregulationswillnecessarilyincludetherequirementsand
proceduresfornotifications,alternativeoradditionalthresholds,ifany,fornotificationandsuchother
detailsnecessarytoenabletheCommissiontoeffectivelyandefficientlyexerciseitspowertoreview
proposedmergersandacquisitions
WHEREAS,pendingcompletionandpromulgationoftheimplementingrulesandregulations,the
Commissionlacksbasistoconductanadequatereviewofsuchmergersandacquisitions
WHEREFORE,inconsiderationoftheforegoingpremisesandbyvirtueofthepowersvestedbyR.A.
10667,theCommissionresolvedtoadoptthefollowingtransitoryrulesandguidelinesanentmergers
andacquisitionsthatwere,oraretobe,executedorotherwiseimplementedaftertheeffectivityof
http://www.gov.ph/2016/02/12/pccmc16001/

thelawbutbeforetheeffectivityoftheimplementingrulesandregulations:

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2/16/2016

PHCompetitionCommissionMemorandumCircularNo.16001|OfficialGazetteoftheRepublicofthePhilippines

1.Pursuanttoparagraph(c)ofSection19ofR.A.10667,theCommissionexemptsfromthe
requirementtonotifytheCommissionpartiestomergeroracquisitionagreementswhereinthe
valueofthetransactionexceedsOneBillionPesos(P1,000,000,000.00)andwhichwere
executedorotherwiseimplementedaftertheeffectivityofthelawbutbeforetheeffectivityofthis
MemorandumCircular.
2.PartiestoamergeroracquisitionagreementwhereinthevalueofthetransactionexceedsOne
BillionPesos(P1,000,000,000.00)andwhicharetobeexecutedorotherwiseimplementedafter
theeffectivityofthisMemorandumCircularbutbeforetheeffectivityoftheimplementingrulesand
regulationsshallnotifytheCommissionthroughaletteraddressedtotheCommissioncontaining
thefollowinginformation:
a.thepartiestothemergeroracquisition
b.thenameandcontactdetailsoftheauthorizedrepresentativesofeachofthepartiestothe
mergeroracquisitiontowhomtheCommissionmayaddressanycorrespondence
c.abriefdescriptionofthebusinessesofthepartiestothetransaction
d.thetypeoftransaction(whetheramergeroranacquisition)
e.theconsideration
f.thekeytermsofthetransactionand
g.thetimingfortheexecutionorimplementationofthetransaction.
3.Mergersandacquisitionscoveredbythetwoprecedingparagraphsshallbedeemedapproved.
ThepartieswhichnotifytheCommissioninaccordancewiththeimmediatelypreceding
paragraphmayproceedtoexecuteorimplementtheiragreement.
4.MergersandacquisitionsthataredeemedapprovedunderthisMemorandumCircularshall
benefitfromSection23ofR.A.10667andmaynotbechallengedunderthislaw,exceptwhenthe
notificationrequiredunderparagraph2abovecontainsfalsematerialinformation.
5.MergersoracquisitionswhereinthevalueofthetransactionexceedsOneBillionPesos
(P1,000,000,000.00)andarenotnotifiedtotheCommissioninaccordancewiththis
MemorandumCirculararesubjecttotheprovisionsofSection17ofR.A.10667.
6.GiventhespecialnatureoftransactionseffectedthroughthePhilippineStockExchange,
transitoryrulesandguidelinespertainingtothenotificationofrelevanttransactionsthereinafter
theeffectivityofthisMemorandumCircularbutbeforetheeffectivityoftheimplementingrulesand
regulationsshallbepromulgatedbytheCommissioninaseparatememorandumcircular.
7.ThetransitoryrulesandguidelinescontainedinthisMemorandumCircularshallremainvaliduntil
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supersededuponeffectivityoftheimplementingrulesandregulationstobepromulgatedbythe

2/16/2016

PHCompetitionCommissionMemorandumCircularNo.16001|OfficialGazetteoftheRepublicofthePhilippines

Commission.
ThisCircularshalltakeeffectfifteen(15)daysafteritspublicationintheOfficialGazetteandone(1)
newspaperofgeneralcirculation.
PasigCity,Philippines.
12February2016.
(Sgd.)ARSENIOM.BALISACAN
Chairperson

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