Manila: The Philippine Competition Commission (PCC) has increased the minimum transaction value for mergers and acquisitions (M and As) that require notification. This change is part of an effort to streamline regulatory processes and accommodate economic growth.

According to Philippines News Agency, the PCC announced that the thresholds for M and A deals have been raised to PHP8.5 billion for the size of party (SOP) and PHP3.5 billion for the size of transaction (SOT). The SOP accounts for the total value of assets held by a party's parent company, whereas the SOT pertains to the value of the acquired firm and its controlled entities.

The revised thresholds, which became effective last month, are adjusted annually based on the previous year's nominal gross domestic product (GDP) growth. This marks the eighth adjustment since the baseline was established at PHP1 billion following the enactment of the Philippine Competition Act a decade ago. In 2024, the SOP threshold was set at PHP7.8 billion, and the SOT was at PHP3.2 billion.

The PCC, as the Philippines' antitrust authority, conducts reviews of M and As to prevent agreements that could significantly reduce competition in relevant markets. Even if a transaction does not meet the notification thresholds, the PCC may still initiate a review on its own initiative if there are reasonable grounds to suspect that the transaction could harm competition or preliminary findings suggest it already has.

To date, the PCC has received 328 transactions with an aggregate value of PHP6.27 trillion. The majority of these are in the sectors of manufacturing (57), financial and insurance (53), real estate (47), electricity and gas (45), and transportation and storage (32).