The Market Monitor Minding the Nation's Business
The Philippine Competition Commission (PCC) has given the green light to a joint venture between Singapore-based Canopy Investments Pte. Ltd. and several Philippine firms involved in cold storage, logistics, and real estate, determining that the partnership does not pose risks to market competition.
The deal involves Canopy partnering with local companies Mets Logistics Inc., Mets En Co Inc., Einstee Realty Inc., Marssha Realty Development and Trading Corp., Magnificent Trio Properties Inc., and Mets Cold Storage Systems Inc.
Canopy will act as the group’s financial backer by investing in newly issued shares of Mets Cold Storage, enabling the expansion of Mets Logistics’ cold storage network across the country.
“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,” the anti-trust body said in a statement Wednesday.
Before finalizing Canopy’s investment, the group will undergo a corporate reorganization, consolidating all logistics and cold storage activities under Mets Cold Storage. As part of this, associated property firms will transfer relevant land and infrastructure, retaining only assets unrelated to the cold storage operations.
PCC’s review included an assessment of potential effects on dry warehousing, land leasing for commercial and industrial purposes, and office space rental. It concluded that the realigned operations and financial infusion would not distort market competition.
The partnership is expected to expand cold storage capacity in the Philippines and promote healthy competition within the country’s cold chain sector.