SG firm withdraws share acquisition in Makati subway deal: PCC


The Philippine Competition Commission (PCC) reported Thursday that Singapore-based Redco Transit Development Pte. Ltd. has terminated the proposed acquisition of shares in Makati City Subway, Inc. from Philippine Infradev Holdings, Inc. and Hong Kong Binjiang Industrial Ltd.

“The parties withdrew their notification of the transaction currently undergoing merger review, and informed the MAO (Mergers and Acquisitions Office) that they decided not to pursue the transaction and to terminate their share purchase agreement due to circumstances arising from the Covid-19 (coronavirus disease 2019) pandemic,” the PCC said in a statement.

It said the anti-trust body was formally informed by the parties on March 9.

“The MAO respects the parties’ decision to withdraw, modify, or re-file their agreements, and stands ready for future notifications on this transaction,” the PCC added.

The anti-trust body noted that parties have full discretion in carrying out decisions on their business strategies and operations.

“For its part, the MAO carries out its functions in a non-discriminatory manner in accordance with the statutory timelines and regulatory requirements in merger reviews, with this transaction as no exemption,” the PCC said.

The parties notified the PCC of the share acquisition transaction in September 2020 and went through a notification process, including multiple consultations.

It also granted the parties’ requests for extensions equivalent to more than four months.

Meanwhile, Makati subway project proponent Infradev earlier said the company would be on track to complete the project by 2025.

The Makati subway line will run from the Makati Central fire station to the University of Makati, also connecting the city’s key points, such as the central business district, Circuit City, Makati City Hall, and Makati hospital, as well as the transport systems in Makati, such as Mass Rail Transit (MRT) Line 3, the Pasig River ferry, and the proposed Metro Manila subway.

Source: Philippines News Agency