PCC reviewing Japan Tobacco acquisition of Mighty Corp.
The Philippine Competition Commission is reviewing the deal between the Japan Tobacco International and local cigarette manufacturing Mighty Corp., an official said on Thursday.
In a press briefing in Malacanang, Philippine Competition Commission chairman Arsenio Balisacan said his office has received notification on the acquisition of JTI of Mighty Corp., which has offered to the government a settlement of P25 billion for its deficiency in excise and income taxes.
"We are evaluating their compliance to the requirements at the moment. And as you know, we have --- if there are no problems with the submission, approval can be as early as, you know, within the first 30 days upon completion of all the requirements," he said.
But he added if there would be issues or additional concerns of data that would be needed, the PCC is required to evaluate the matter in 90 days.
"Otherwise, if the Competition Commission… would not render its decision within that period, the transaction is deemed approved," Balisacan added.
JTI will acquire Mighty's assets and distribution network. It has agreed to provide an interim loan to Mighty to pay off the latter's tax liabilities.
The Japanese firm earlier issued a manager's check amounting to P3.44 billion, covering Mighty's excise tax liabilities and deposited at the SSS branch of the Land Bank of the Philippines in Quezon City. The amount represented the initial tranche of Mighty’s settlement offer.
According to the Department of Finance, the balance of P21.5 billion will be paid on or after the closing of the proposed deal with JTI, which needs to be cleared by the PCC. Celerina Monte/DMS