PCC rejects PLDT, Globe report on San Miguel telco buyout

Chrisee Dela Paz | Published 6:52 PM, June 10, 2016 | Updated 7:03 PM, June 10, 2016

The chairman of PCC says PLDT, Globe and San Miguel cannot proceed with the terms of the deal until the agency approves the transaction report

MANILA, Philippines – The Philippine Competition Commission (PCC) rejected Philippine Long Distance Telephone Company’s (PLDT) and Globe Telecom, Incorporated’s initial transaction report on their P69.1-billion deal to buy out San Miguel Corporation’s (SMC) telecommunication businesses.

“We returned their submission because of incomplete information. We asked the parties to the transaction to refile their notification to PCC. The deal is not deemed approved,” PCC Chairman Arsenio Balisacan told Rappler in a mobile phone reply on Friday, June 10.

The anti-trust body’s decision comes a week after it released its implementing rules and regulations (IRR) for the Philippine Competition Act. (READ: San Miguel’s sale of telco business: Will consumers benefit?)

PCC also clarified on Friday that the mere filing of a notification with the PCC – even under transitory rules – does not guarantee that a transaction is “deemed approved.”

The San Miguel telco acquisition entails P52.08 billion for 100% equity interest in Vega Telecom, Incorporated and the assumption of around P17.02 billion of liabilities.

The deal would allow PLDT and Globe access to 700 megahertz (MHz) frequencies, which they said, will help them provide subscribers with “better experience on mobile data and home broadband services.”

Under the deal, PLDT and Globe will be returning radio frequencies in 700 MHz, 850 MHz, 2500 MHz, and 3500 MHz bands to the government.

PLDT and Globe have also activated their first 700 MHz LTE cell sites.

But according to Balisacan, PLDT and Globe cannot proceed with the terms of the deal until their transaction report is approved by PCC. – Rappler.com

Source: www.rappler.com/business