“We have withdrawn from the bidding process for Sky Cable … Upon review of Bayanihan Act 2, the PCC [Philippine Competition Commission] has the ability to review merger and acquisitions one year after the effectivity of the act and possibly reverse agreements. That’s the main reason,” Pangilinan said in a virtual briefing.
Under the law, business mergers or acquisition agreements may not be consummated without the approval of the PCC.
The PCC may reject transactions that prevent, restrict or lessen market competition.
The PLDT Group operates direct-broadcast satellite TV provider Cignal TV, which competes with Sky Cable.
Pangilinan was earlier warned by the group’s top executives that the proposed deal might face tight scrutiny by the PCC one year after the Bayanihan 2 Law’s effectivity.
Sky Cable currently has nearly 300,000 broadband subscribers and more than 500,000 cable users.
Aside from PLDT, other groups that signified interest in Sky Cable were Converge ICT’s Denni Anthony Uy, DITO Telecommunity’s Dennis Uy and the Ayala Group.