Citing the absence of likely unilateral or foreclosure effects and strict regulatory safeguards against market foreclosure, the Philippine Competition Commission (PCC) cleared the acquisition by ABC Energy, Inc. (ABC Energy) of a 40 percent minority equity stake in each of Alternergy Tanay Wind Corporation (Alternergy Tanay) and Alabat Wind Power Corporation (Alabat Wind).
The PCC determined that the transaction is not likely to result in a substantial prevention, restriction, or lessening of competition in the nationwide generation and supply of renewable energy.
The approval covers the investment agreement signed by Alternergy Wind Holdings Corporation (Alternergy Wind), Alternergy Tanay, Alabat Wind, and ABC Energy. Post-transaction, Alternergy Wind retains a 60 percent majority stake and continues to exercise operational control and management over both Alternergy Tanay and Alabat Wind.
ABC Energy is a domestic holding company organized for energy-related investments and is wholly owned by A Brown Company, Inc., under Brownfield Holdings Incorporated (Brownfield Holdings). Meanwhile, both wind energy entities are wholly owned by Alternergy Wind, a subsidiary of Alternergy Holdings Corporation (Alternergy Holdings).
In evaluating the transaction’s impact on electricity generation, the PCC’s Mergers and Acquisitions Office (MAO) found that the nationwide market for non-auctioned renewable energy generation is highly fragmented across approximately 222 entities, with no single market participant holding more than an eight percent share.
The MAO further analyzed potential competition risks under government auctions, specifically the Green Energy Auction Program. Significantly, both Alternergy Tanay and Alabat Wind are awardees under the Green Energy Auction 2, whose output capacities are committed under 20-year Green Energy Tariff arrangements, thereby minimizing any potential competition concerns in future auction rounds. Notably, Alternergy Holdings maintains independent strategic and bidding conduct in future auctions.
The PCC also ruled out vertical foreclosure risks in the supply of renewable energy to retail electricity suppliers (RES). The Commission highlighted that existing regulatory rules strictly cap a RES from sourcing more than 50 percent of its supply requirements from its affiliated generation companies. This statutory ceiling limits the parties’ ability from diverting output exclusively to affiliated retail entities such as ALTER RES. Competition in the market is maintained by the existence of substantially established power players and an expanding pipeline project of around 79 renewable energy plants targeted for commercial operation beyond 2031.
The PCC is mandated under the Philippine Competition Act to review mergers and acquisitions to prevent market concentration that harms consumer welfare. Rigorous review and clearance of transactions help ensure market predictability, protect competitive market structures, and promote sustainable economic growth, particularly in vital sectors like renewable energy.
