The Philippine Competition Commission (PCC) has cleared the proposed acquisition by DoubleDragon Corporation (Double Dragon) of shares in MerryMart Consumer Corporation (Merry Mart), issuing its decision ahead of the mandated review period for Phase 1.
Double Dragon is a diversified real estate developer with core operations spanning retail complexes, office spaces, industrial facilities, and hospitality ventures. Its subsidiaries include CityMall Commercial Centers (City Mall), which operates malls across the country, and CentralHub Industrial Centers (Central Hub), which operates warehouse complexes in the Philippines. Merry Mart, on the other hand, is a fast-growing retail chain focused on consumer goods, operating supermarkets and convenience outlets across the country.
The PCC’s Mergers and Acquisitions Office (MAO) assessed potential impact on competition in the markets for lease of commercial spaces and warehouse facilities to grocery stores and convenience stores in the cities and municipalities where Double Dragon subsidiaries, City Mall and Central Hub, operate. This assessment considered both the upstream markets, which include the supply of commercial spaces and general warehouse facilities, and the downstream markets, which include grocery stores and convenience stores.
Consultations were conducted with key industry stakeholders, which include major retail chain competitors, customers, and relevant government agencies.
The MAO found that the transaction is not likely to result in a substantial lessening of competition. With strong competitors active at both upstream and downstream markets, Double Dragon and Merry Mart remain effectively constrained from engaging in input foreclosure (restricting rivals’ access to spaces or facilities) and customer foreclosure (limiting consumer choice in retail).
With this clearance, the PCC affirms its commitment to safeguarding competitive markets while ensuring that mergers and acquisitions proceed in ways that allow businesses to pursue growth opportunities that benefit consumers and the broader economy.
