The Philippine Competition Commission (PCC) has cleared the planned energy deal with First Gen Corp., giving the power firms the regulatory go-ahead to form joint ventures spanning gas-fired power generation and liquefied natural gas infrastructure.
The approval follows a Phase 1 review of the interconnected markets involved in the deal, which will see Prime Infras acquire majority stakes in seven First Gen holding firms.
Those companies hold indirect interests in the Santa Rita, San Lorenzo, San Gabriel, and Avion gas plants, the planned Santa Maria facility, and an LNG terminal in Batangas. Prime Infra had acquired 60 percent of First Gen’s gas assets in a P50-billion deal.
In its assessment, the Mergers and Acquisitions Office of the PCC said it didn’t find any horizontal or vertical issue that would substantially lessen competition. While the combined entity will become the country’s largest renewable energy generator after the transaction, the regulator said the gain in market share is “marginal” and the sector remains unconcentrated, with ample competitive pressure from established and emerging players.
The watchdog also downplayed concerns in the retail electricity supply market. The market share of the merged group will remain far below that of dominant incumbents, the PCC said, noting that active customer switching and a growing roster of licensed suppliers continue to discipline prices and service quality.
On vertical overlaps—including generation, liquefied natural gas terminal operations, and downstream supply—the Commission concluded there was no credible incentive for either company to restrict rivals’ access or engage in foreclosure strategies.
With the clearance, Prime Infra of tycoon Enrique Razon Jr. and First Gen of the Lopez Group move closer to consolidating a major portfolio of gas and clean-energy assets, positioning themselves to help meet the country’s rising demand for reliable, lower-carbon power.
