The Philippine Competition Commission (PCC) has approved the acquisition by circuit board-maker Mikuni Toyo Co., Ltd. (Mikuni Toyo) of 100 percent of shares of ATM module assembler Hitachi Terminals Mechatronics Philippines Corporation (Hitachi), seeing the transaction as not likely to result in substantial lessening of competition in the Philippine market.

In a Commission Decision issued December 10, the competition authority affirmed the Mergers and Acquisitions Office’s findings that the acquisition is unlikely to result in substantial lessening of competition. Both firms were found to produce different electronic products, used for varying applications, thus no horizontal overlaps between the products of Mikuni Toyo and Hitachi in the Philippines. With no direct relation of products between the firms, no vertical overlaps also exist as neither parties’ products are considered as inputs for the other.

Moreover, parties operate only as manufacturers or assemblers of their respective products, all of which are exported to their foreign parent entities and third parties outside of the Philippines.

Mikuni produces and assembles parts for various products, specializing in electronic boards in air-conditioning units, elevators, remote engine starters and security systems in Batangas.

On the other hand, Hitachi manufactures and assembles in Subic components such as card readers, and banknote/coin cassettes for ATM machines which are all exported to Japan.

The acquisition is in consideration of the Mikuni Toyo’s bid to expand its portfolio and increase its presence in the manufacturing and assembly business for new customers in Subic. The buyout is considered due to Hitachi’s plan to streamline its production sites to optimize global production strategy.

To date, PCC has received 201 mergers and acquisitions for review and approved 188 of these local and global transactions, with a combined worth of P3.28 Trillion. DMS