The Philippine Competition Commission (PCC) has cleared Metro Pacific Agro Ventures Inc.’s takeover of Franklin Baker Company of the Philippines, paving the way for a major consolidation in the country’s coconut industry.
After a Phase 2 review, the PCC said the deal is unlikely to harm competition, dismissing concerns that the transaction could squeeze rivals or disadvantage coconut farmers.
Metro Pacific Agro Ventures (MPAV), a unit of Metro Pacific Investments Corporation, operates across dairy, fresh produce, and coconut-based manufacturing, with export-oriented facilities run through affiliate Axelum Resources in Misamis Oriental. The acquisition adds Franklin Baker’s well-established coconut processing operations in Laguna and Davao del Sur, along with its global customer base.
Regulators examined the impact on worldwide markets for desiccated coconut, coconut water, coconut cream, and coconut milk, as well as the sourcing of mature coconuts in Mindanao. While the probe initially flagged potential monopsony risks—where a dominant buyer could dictate prices—the PCC said those fears did not hold up under closer scrutiny.
The commission noted that coconut product markets are global and crowded, with numerous international suppliers and highly price-sensitive buyers keeping margins in check. This limits the ability of the combined firm to raise prices or weaken product quality.
On the farmgate level, the PCC found that coconut growers are not captive to a single buyer. Copra manufacturers remain the largest purchasers and absorb a significant share of output, providing strong countervailing demand and preserving farmers’ bargaining power.
With regulatory approval in hand, Metro Pacific is set to deepen its footprint in the coconut value chain—without tipping the competitive balance.
