Statement on the Opening of Phase 2 Review M-039/2017
Proposed Acquisition by Udenna Corporation of Shares in KGLI-NM Holdings, Inc.
On 10 November 2017, the Mergers and Acquisitions Office (the “MAO”) decided to move to a Phase 2 Review of the PROPOSED ACQUISITION BY UDENNA CORPORATION OF SHARES IN KGLI-NM HOLDINGS, INC. (the “Transaction”), pursuant to Section 17 of Republic Act No. 10067 (“R.A. 10067”).
The initial market investigation conducted by MAO indicates that the Transaction may affect the logistics and domestic shipping industry, particularly passenger and cargo transport, and its related and complementary services. In accordance with R.A. No. 10067 and its Implementing Rules, MAO has a period of sixty (60) days from 10 November 2017 within which to conduct the Phase 2 Review of the Transaction.
The commencement of a Phase 2 Review of the Transaction does not signify that MAO has made a definitive finding of a substantial lessening of competition or prejudge the final result of the review. This merely signifies that the Transaction requires a more detailed analysis based on further information requested from the Notifying Parties and such information as may be necessary to complete the review.