The three-way deal between the country’s largest power firms was hailed as critical to strengthening the Philippines’ energy supply, and comes with conditions to ensure market fairness and transparency, the agency said.
Deal structure
The transaction involves MGEN and Therma, through their joint venture Chromite Gas Holdings Inc., acquiring a 67-percent stake in South Premiere Power Corp., Excellent Energy Resources Inc., and Ilijan Primeline Industrial Estate Corp.
The two firms, along with San Miguel Power, will also jointly acquire 100 percent of Linseed Field Corp., which operates the LNG terminal in Batangas City. Through the deal, Chromite will control 67 percent of the three entities, while San Miguel Power holds a 33-percent stake.
Competition risks
During its review, the PCC identified risks such as potential market coordination and foreclosure in power supply agreements.
In response, parent companies Pilipinas Enterprise Management Holdings Inc., Aboitiz & Company Inc., and Top Frontier Investment Holdings Inc. submitted voluntary commitments, approved by the PCC on December 20, 2024, after consultations with the Department of Energy (DOE) and Energy Regulatory Commission (ERC).
Key competition safeguards
The conditions, effective for five years with potential extensions, aim to balance energy security with market competition. Violations could incur daily fines of up to P2 million per infraction.
The PCC said these safeguards ensure that investments in critical energy infrastructure promote both consumer welfare and economic growth.
By addressing competition concerns, the deal supports a fair and transparent energy market for the Philippines, the agency said.
