THE Philippine Competition Commission (PCC) said it approved a joint venture of a group of cold chain storage and real estate companies with a Singapore holding company.
According to PCC, the deal was approved after it found “that the transaction will not result in a substantial lessening of competition in the relevant markets.”
“The approval of the joint venture is expected to enhance cold storage capacity, thereby strengthening competition in the Philippine cold chain sector,” PCC said.
The deal involves Singapore’s Canopy Investments Pte. Ltd., Mets Logistics, Inc., Mets En Co., Inc., Einstee Realty, Inc., Marssha Realty Development and Trading Corp., Magnificent Trio Properties, Inc., and Mets Cold Storage Systems, Inc.
It is expected to expand Mets Logistics’ cold storage capacity in the Philippines, with Canopy entering as a new financial partner through its subscription for new shares in Mets Cold Storage.
According to the PCC, it reviewed three markets that can be potentially affected by the deal, which are dry storage and warehousing services, land leasing for commercial and industrial use, and office leasing services.
“Following its assessment, the commission found no competition concerns in the joint venture since there will be no overlap in any of the services offered by the companies involved and the reorganization merely involves intra-group transfers,” the PCC added.
Mets Logistics operates cold chain facilities, while the property companies — Einstee Realty, Marssha Realty, and Magnificent Properties — are engaged in commercial storage property management.
Prior to Canopy’s entry, Mets Logistics will undergo internal restructuring in which it will transfer its cold storage and logistics businesses to Mets Cold Storage.
The property firms will also transfer the land and cold storage facilities of the operations while retaining ownership of other properties. — Justine Irish D. Tabile
