THE PHILIPPINE Competition Commission (PCC) has approved Ayala Corp.’s sale of 50% of its stake in AC Ventures Holding Corp. (ACV) to Japan’s Mitsubishi Corp. for P18.4 billion.
The competition watchdog found that Mitsubishi’s investment in ACV would not “significantly reduce” competition in the market for quick response (QR) code-based person-to-merchant digital payments, the PCC said in an e-mailed statement on Thursday.
ACV is the venture capital arm of Ayala Corp. and holds 13% of Globe Fintech Innovations, Inc. (Mynt), the parent company of GCash operator G-Xchange, Inc. and tech-based microlender Fuse Lending.
The PCC found that Mitsubishi has a limited presence in the QR code-based payment market despite its indirect ownership of convenience store chain Lawson Philippines, and said the transaction would not lead to a “substantial lessening” of competition.
“The commission cited in its [July 3] decision the small market share held by GCash in the provision of QR-based person-to-merchant payments, as well as the strong governmental push for interoperability in QR-based payments across the country,” the PCC also said.
Ayala Corp. and Mitsubishi finalized the investment deal in April, after it was announced in October last year.
Following the transaction, Ayala Corp. and Mitsubishi now each hold 50% of ACV.
Mitsubishi subscribed to 18.03 million common and redeemable preferred shares of ACV as part of the investment agreement.
Person-to-merchant payments via QR codes allow businesses to accept digital payments from consumers for goods and services they sell.
Ayala Corp. President and Chief Executive Officer Cezar P. Consing earlier said that Mitsubishi’s investment is expected to bring “meaningful value” to Mynt and its registered users.
“It’s all about serving better the many Filipinos that depend on GCash and Fuse, and for making a wider variety of financial and other products available to as many Filipinos as possible,” he said.
Under the Philippine Competition Act, the PCC is directed to review mergers and acquisitions to ensure transactions do not lead to a substantial lessening of competition in relevant markets.
Ayala Corp.’s core businesses are in the banking, real estate, and telecommunications sectors, while Mitsubishi is Japan’s largest trading company, with global operations spanning energy, urban development, and various other industries.
On Thursday, Ayala Corp. shares rose by 0.08% or 50 centavos to P590 apiece. — Revin Mikhael D. Ochave
