THE Philippine Competition Commission (PCC) has cleared Dubai Aerospace Enterprise Ltd.’s takeover of Nordic Aviation Capital Designated Activity Co. from NAC Holdings Ltd.
“The commission decided that the transaction would not substantially reduce competition in the Philippines,” the PCC said in a statement on Monday.
Dubai Aerospace, which is owned by the Investment Corp. of Dubai, and NAC Holdings’ Nordic Aviation are both involved in dry leasing aircraft.
The PCC Mergers and Acquisitions Office (MAO) started the first phase review of the deal on March 20, wherein it evaluated the transaction under the provisions of the Philippine Competition Act.
“After reviewing submissions from the merger parties and third-party feedback, the MAO concluded that Dubai Aerospace’s acquisition of Nordic Aviation is unlikely to harm competition, due to their minimal market shares and the presence of other competitors in the industry,” the PCC said.
“The MAO also noted the dynamic nature of the global aircraft leasing market, which makes it attractive for additional players to enter,” it added.
Under the law, the PCC is required to review mergers and acquisitions to ensure that the deals do not significantly impact competition or harm consumer welfare.
On March 1, the PCC adjusted the thresholds for transactions that require notification to a size of party (SoP) of P8.5 billion and size of transaction (SoT) of P3.5 billion.
These replaced the previous SoP of P7.8 billion and SoT of P3.2 billion. It marked the eighth adjustment of the threshold since the law took effect in 2015. — Justine Irish D. Tabile
