The Philippine Competition Commission swiftly approved a significant business move: DoubleDragon Corporation’s planned acquisition of shares in MerryMart Consumer Corp. This decision arrived well before the initial review deadline, signaling a clear path forward for the two companies.
The commission determined the transaction wouldn’t stifle competition within the market. Robust competition already exists both from suppliers and from other businesses vying for customers, effectively preventing any potential for unfair advantages.
DoubleDragon is a dynamic force in Philippine real estate, developing a diverse portfolio that includes retail spaces, modern offices, expansive industrial complexes, and welcoming hospitality venues. Their subsidiaries, CityMall and CentralHub, are already well-established names across the nation.
MerryMart, on the other hand, is rapidly expanding its footprint as a popular chain of supermarkets and convenient stores. They focus on providing essential consumer goods to communities throughout the Philippines.
The PCC emphasized its dedication to fostering a healthy, competitive marketplace. Approving this merger allows both companies to pursue growth strategies that ultimately benefit consumers and contribute to the overall economic strength of the country.
A thorough review was conducted by the PCC’s Mergers and Acquisitions Office, carefully analyzing the potential impact on competition. This included examining the leasing of commercial spaces and warehouses – areas where DoubleDragon’s CityMall and CentralHub play a key role.
The investigation didn’t stop there. It also considered the broader supply chain, looking at both the availability of space and warehousing, and the retail market itself. This holistic approach ensured a comprehensive understanding of the deal’s implications.
To gain a complete picture, the PCC actively sought input from key players in the industry. This included major retail competitors, consumers, and relevant government agencies, ensuring all perspectives were considered.
Last year, DoubleDragon initially announced its intention to acquire a 35% stake in MerryMart for P1.28 billion. This move represented a significant investment in the consumer retail sector.
The deal involves the purchase of 2.66 billion MerryMart shares from Injap Investments, Inc., priced at 48 centavos per share – a value based on the average trading price over a 30-day period. A unique aspect of the transaction is the payment structure: half in DoubleDragon shares, and half in cash totaling P637.97 million.
This acquisition prompted DoubleDragon to redefine its core business. In 2021, they amended their corporate charter, shifting their primary focus from real estate development to an investment holding company, signaling a broader strategic vision.
DoubleDragon anticipates this investment will be instrumental in achieving its ambitious revenue target of P500 billion by 2035, demonstrating a long-term commitment to growth and expansion.
Following the announcement of the PCC’s approval, DoubleDragon’s shares experienced a positive market reaction, rising 1.89% to close at P9.17 – a gain of P0.17 per share.
