MANILA -- The Philippine Competition Commission (PCC) has approved the acquisition by Japanese consumer finance firm JACCS Co. Ltd. of the shares of Mitsubishi Motors’ financing firm MMPC Auto Financial Services Corporation (MAFS).
The proposed transaction involves the buyout by JACC of shares owned by BDO Leasing and Finance Inc. (BDOLF) and Mitsubishi Motors Corporation Motors Philippines Corporation (MMPC) under the MAFS portfolio for Mitsubishi car loans.
“The antitrust authority found that the transaction does not result in substantial lessening of competition in the car loan market,” the PCC said in its decision dated June 13 released to the media on Monday.
“The PCC also found that the transaction is expected to have a pro-competitive effect in the auto loan industry since BDOLF also offer loans to other car brands other than Mitsubishi,” it added.
The competition watchdog noted that there remains a sufficient number of competitors in the automotive loan market after the transaction.
Under the transaction, BDOLF will divest its 3 million shares equivalent to 40 percent of MAFS to JACCS.
MMPC will also sell 5 percent of its share which will increase the share of JACCS in MAFS to 65 percent. Japan-based Sojitz Corporation will retain its 35 percent holdings in the company.
MAFS is a joint venture among JACCS, BDOLF, MMPC, and Sojitz Corp. that provides financial services to individual and corporate buyers of Mitsubishi motor vehicles. (PNA)
