Duterte crony Dennis Uy pays P19.6M fine to anti-competition body
The Philippine Competition Commission (PCC) announced on Monday that it has finally approved the transaction between Udenna Corp. and Dutch firm KGL Investment Cooperatief (KGLI Coop), effectively reversing its ruling last February.
But not after making bilyonaryo and President Rodrigo Duterte’s long time crony Dennis Uy pay P19.6 million in fine for not informing the government of its merger with the Dutch company that indirectly holds a stake in 2GO.
In a decision dated May 4, the PCC has given its go-signal for Udenna to buyout KGLI Coop’s outstanding stock in KGL Investment B.V. The transaction is reportedly worth some $ 120 million.
The approval came after both companies have complied with conditions in the Commission’s February ruling. The parties already notified the PCC of their transaction and paid the administrative fine amounting to P19.6 million to the National Treasury.
The Commission ruled last February to void the transaction of Udenna and KGLI Coop and penalize the firms with P19.6-million administrative fine for not notifying the antitrust body of their deal.
Before the PCC hiked the notification threshold in March this year, enterprises with transactions breaching the P1-billion mark are obliged to first notify the Commission, which will then conduct review.
The review aims to ensure that the transaction does not negatively impact free market competition.
The PCC initially prevented the Udenna-KGLI Coop transaction from being consumated because it was not notified of the transaction, which easily breached the P1-billion threshold.
PCC’s decision noted that it approved the transaction between the companies as it “is not likely to result in lessening of competition with the Philippine market because there are no existing horizontal overlaps or vertical relationships that exist between the parties”.
Udenna now owns 100 percent of KGLI B.V. (PNA)