Abstract:

SM Investments Corporation (“SMIC”), a Philippine corporation, is the holding company of the SM Group of Companies. SMIC has equity investments in, among others, property, retail, financial services, and mining. SMIC proposes to acquire 61.2% shares in Philippines Urban Living Solutions, Inc. (“PULS”), a Philippine registered property developer engaged in the business of leasing bed-spaces and units in purpose-built dormitories around the Bonifacio Global City area.

COMMISSION DECISION No. 05-M-075/2016
Acquisition by SM Investments Corporation of shares in Philippines Urban Living Solutions, Inc.
M-075/2016

The Commission,

Having regard to the Acquisition by SM Investments Corporation of shares in Philippines Urban Living Solutions, Inc.

Having regard to Section 16 and 20 of Republic Act No. 10667 and Section 1, Rule 4 of the Rules and Regulations to Implement the Provisions of Republic Act No. 10667,

Has adopted this Decision:

In view of the recommendation from the Mergers & Acquisition Office that, on the basis of information obtained from the parties and other sources to date, the acquisition by SM Investment Corporation of shares in Philippines Urban Living Solutions, Inc. (the “Transaction”) does not result in substantial lessening of competition in the relevant market, since sufficient post-acquisition competitive constraints on the merged firm remains from other market participants; the Commission hereby resolves that it will take no further action with respect to the Transaction.

The Commission takes note of SM Investments Corporation’s alleged inability to provide additional information requested by the Mergers & Acquisitions Office during Phase I review. The Commission reiterates the positions of the Mergers & Acquisitions Office that the Commission has the power to require the production of reasonably necessary and directly relevant business information. In addition, the Commission is mindful of its duty to protect confidential business information obtained in the course of the proceedings.

DONE, this 13th day of March 2017, in the City of Pasig, Philippines.

sgd

ARSENIO M. BALISACAN

Chairman

       sgd                                                                                                sgd

JOHANNES BENJAMIN R. BERNABE                                            STELLA LUZ A. QUIMBO

       Commissioner                                                                            Commissioner

            (on leave)                                                                              (on official travel)

            EL CID R. BUTUYAN                                                            AMABELLE C. ASUNCION

       Commissioner                                                                            Commissioner