Push Admin

Antitrust body approves AC Logistics’ proposed acquisition of Air21 shares

Article (news)

ABS-CBN News

<div class="embed-wrap"><figure data-feedback="fb:likes,fb:comments"><img alt=" AC Logistics signed an investment agreement with Air 21 Holdings, Inc (AHI). Handout" src="https://sa.kapamilya.com/absnews/abscbnnews/media/2021/business/11/12/20211112_handout.jpg"/><figcaption>AC Logistics signed an investment agreement with Air 21 Holdings, Inc (AHI). <em>Handout</em></figcaption></figure></div><p><br/>MANILA - The Philippine Competition Commission on Wednesday said it has approved the proposed acquisition by the Ayala-led AC Logistics Holdings Corp of controlling interest in Air21 Holdings Inc.</p><p>&quot;In its Commission Decision, the PCC found that the proposed acquisition does not result in substantial lessening of competition in relevant markets within the logistics sector,&quot; the antitrust body said.</p><p>Based on the analysis of the Mergers and Acquisitions Office, the transaction would not result in dominant market position, the PCC said.</p><p>&quot;The parties were also found to have no increased ability nor incentive to engage in anti-competitive foreclosure, such as exclusively supplying its own downstream customers or restricting its services to other downstream markets or players,&quot; it said.</p><p>&quot;PCC also deemed it was unlikely for the transaction to effectively limit access of other players to a significant customer base in the same relevant markets,&quot; it added.</p><p>Since operations of the two firms &quot;overlap in some markets,&quot; the review involved the competition effects in the following:</p><ul>	<li> national market of domestic courier and messenger services</li>	<li> domestic air, sea and road freight forwarding</li>	<li> nationwide or regional market for trucking services</li>	<li> general warehousing and storage services in Luzon</li>	<li> cold storage services in Metro Manila and Southern Luzon</li></ul><p>Ayala Corp in November 2021 said AC Logistics signed an investment agreement to acquire 60 percent interest in Air21 Holdings.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/11/12/21/ayala-corp-unit-to-acquire-60-pct-interest-in-air21">Ayala Corp says unit to acquire 60 pct interest in Air21 for P6 billion</a></li></ul><p>Under the proposed transaction, AC Logistics entered into an exchange note agreement for conversion shares with Air21 Holdings, owner Alberto Lina and 8 logistics companies in the network, the PCC said. </p><p>The conversion will result in at least 60 percent stake in Air21, which controls Airfreight 2100 Inc, Air 2100 Inc, LGC Logistics Inc, Cargohaus Inc, U-Freight Phils. Inc, U-Ocean Inc, Waste &amp; Resources Management Inc and Integrated Waste Management Inc, it added.</p><ul class="op-related-articles">	<li><a href="https://news.abs-cbn.com/business/10/12/16/ups-taps-air21-to-expand-ph-services">UPS taps Air21 to expand PH services</a></li></ul><div><strong>RELATED VIDEO:</strong></div><figure class="op-interactive"><iframe allow="autoplay; fullscreen" frameBorder="0" height="100%" id="ivsplayer01" scrolling="no" src="https://player.ivideosmart.com/ivsplayer/v4/dist/html/iframe-src.html?iframeid=ivsplayer01&amp;key=e8c22c015ca9eafa76f1e3edfa03c603&amp;spid=3001339&amp;vid=1963940" width="100%"></iframe></figure><div class="iwantbar">Watch more News on <a href="https://www.iwanttfc.com/#!/browse/Genres/News/tag_id_genres/id_news" target="_blank">iWantTFC</a></div>

The Philippine Competition Commission has approved the proposed acquisition by AC Logistics Holdings Corp of controlling interest in Air21 Holdings Inc.