To effectively set up the country's merger control regime based on existing provisions of law, the Department of Justice (DOJ) and the Securities and Exchange Commission (SEC) signed today a Memorandum of Agreement (MOA) for guidelines on merger regulation.
“Our partnership with SEC will provide a new dimension to anti-competitive mergers enforcement and enable the DOJ - Office for Competition (OFC) to help evaluate the likely impact of proposed mergers on competition,” said Secretary Leila M. De Jima.
The MOA provides for the notification of merger or consolidation applications, the timeline and procedure to assess such applications, and preparation of report, among others. In addition, it seeks to define the roles of both parties whenever applications for merger or consolidation are submitted to the SEC.
“Part of our commitment in this cooperation is the issuance of a Memorandum Circular to give notice to all entities concerned for the effective implementation of the guidelines,” said SEC Chairperson Teresita J. Herbosa.
Assistant Secretary Geronimo L. Sy, Head of the OFC, noted that this joint initiative stems from the Terms of Reference for the Working Groups adopted in 2013 where the SEC, as Co-Chair of OFC Working Group on Business and Economics, is responsible, among others, to monitor reported transactions involving mergers of corporations, acquisitions, consolidations, and other anti-competitive conduct in the market or concerned industries.
The DOJ, through the OFC, as the country's competition authority, is mandated, among others, to provide a level playing field for market players and safeguard consumer welfare.