The proposed energy joint venture between Razon-owned Prime Infrastructure Capital Inc. and Lopez-owned First Gen Corporation, two of the country’s leading conglomerates, has been cleared by the Philippines’ anti-trust body – the Philippine Competition Commission (PCC).
In a statement, PCC said it has found no competition concerns in the proposed joint ventures between the two conglomerates, following a Phase 1 review of interlinked energy markets.
The transaction involves Prime Infrastructure’s acquisition of majority stakes in seven holding companies under First Gen, which collectively hold indirect interests in the following gas-fired power plants – Santa Rita, San Lorenzo, San Gabriel, Avion, and the planned Santa Maria facility – as well as a liquefied natural gas (LNG) terminal facility in Batangas.
Prime Infrastructure is a holding and management company engaged in infrastructure development and investment, including renewable energy, water, and construction. Its ultimate parent entity is Razon & Co. Inc., which holds a combined 45 percent participating interest in the Service Contract 38 Consortium operating the Malampaya Gas Field through Prime Infrastructure’s subsidiaries Prime Energy Resources Development B.V. and Prime Oil and Gas, Inc. First Gen, a domestic corporation under Lopez, Inc., operates power plants utilizing geothermal, hydro, wind, solar, and natural gas.
The PCC’s Mergers and Acquisitions Office assessed two horizontal markets and four vertical markets and found that the transaction is unlikely to result in a substantial lessening of competition in any of the identified markets.
In the renewable energy generation market, the parties will become the largest firm post-transaction, but only by a minimal margin, with the market remaining unconcentrated and subject to competitive constraints from numerous existing and prospective players. In the retail electricity supply market, the parties’ combined share remains significantly below major players, with customer switching and the presence of multiple licensed suppliers preserving competition.
Meanwhile, in the vertical markets, the Commission found no ability or incentive for the parties to engage in foreclosure strategies.
This review reflects PCC’s case-by-case approach to merger assessment. In December 2024, the Commission imposed behavioral conditions on a joint acquisition involving LNG and power assets by Meralco PowerGen Corp., Therma NatGas Power Inc., and San Miguel Global Power Holdings Corp., following identified risks of coordination and foreclosure. In the present transaction, no such concerns were found, with the Commission citing market fragmentation, significant competition, regulatory safeguards, and the absence of foreclosure incentives as key factors in its assessment.
The Commission’s findings affirm its role not only as a merger review authority, but as a steward of competitive integrity in sectors vital to national development. In transactions involving strategic infrastructure and energy assets, the PCC remains committed to upholding competition, transparency, and consumer welfare.
