IPP
, Philippines

Philippine competition watchdog rules out threat of Aboitiz Power's AA Thermal acquisition

Aboitiz Power bought a 49% voting stake and 60% economic stake in Ayala Corporation’s thermal assets.

Aboitiz Power’s acquisition of AA Thermal will not likely result in a substantial lessening of competition in the markets for power generation and retail electricity supply in the Philippine islands of Luzon and Visayas, the Philippine Competition Commission (PCC) said.

Aboitiz Power Corporation bought a 49% voting stake and a 60% economic stake in AA Thermal Inc., AC Energy's thermal platform in the Philippines for a total of $579.2m.

In a decision the PCC published, it said Aboitiz Power will only acquire a minority stake in AA Thermal. Moreover, there will be no change of control in the operating companies, GNPower Mariveles Coal Plant (GMCP) and GNPower Dinginin (GNPD), that would give Aboitiz Power an increased ability to influence their actions.

There is also no increased ability to engage in foreclosure post-transaction, and there are sufficient post-transaction constraints from other power generation and electricity suppliers.

“The Commission hereby resolves that it will take no further action with respect to the proposed acquisition by Aboitiz Power of share of stock in AA Thermal,” said PCC chairman Arsenio M. Balisacan.

Follow the link for more news on

Join Asian Power community
Since you're here...

...there are many ways you can work with us to advertise your company and connect to your customers. Our team can help you dight and create an advertising campaign, in print and digital, on this website and in print magazine.

We can also organize a real life or digital event for you and find thought leader speakers as well as industry leaders, who could be your potential partners, to join the event. We also run some awards programmes which give you an opportunity to be recognized for your achievements during the year and you can join this as a participant or a sponsor.

Let us help you drive your business forward with a good partnership!