Mets Logistics Inc. will expand its cold storage capacity in the Philippines following the approval by the Philippine Competition Commission (PCC) of its joint venture with a Singapore investments company.
In a statement, the country’s anti-trust watchdog said the transaction will not result in a substantial lessening of competition in the relevant markets.
The partnership was entered into by Canopy Investments Pte. Ltd. (Canopy), Mets Logistics, Inc. (Mets Logistics), Mets En Co Inc. (Mets En Co), Einstee Realty, Inc. (Einstee Realty), Marssha Realty Development and Trading Corporation (Marssha Realty), Magnificent Trio Properties, Inc. (Magnificent Properties), and Mets Cold Storage Systems Inc. (Mets Cold Storage).
Canopy, a Singaporean-based holding company, will enter as a new financial partner through its subscription to new shares in Mets Cold Storage.
PCC said that the entry of Canopy is expected to expand Mets Logistics’ cold storage capacity in the Philippines.
The PCC reviewed three potentially affected markets: dry storage and warehousing services, land leasing for commercial and industrial use, and office leasing services.
Following its assessment, the Commission found no competition concerns in the joint venture since there will be no overlap in any of the services offered by the companies involved and the reorganization merely involves intra-group transfers.
Mets Logistics operates cold chain facilities across the country, while Mets En Co serves as its parent company. The property companies—namely, Einstee Realty, Marssha Realty, and Magnificent Properties—are family-owned entities engaged in commercial storage property management.
Prior to Canopy’s investment, an internal restructuring will be undertaken to transfer Mets Logistics’ cold storage and logistics businesses to Mets Cold Storage. The property companies will also transfer land and cold storage facilities dedicated to these operations, while retaining ownership of other properties.
The approval of the joint venture is expected to enhance cold storage capacity, thereby strengthening competition in the Philippine cold chain sector.
