THE Philippine Competition Commission (PCC), noting potential issues, has decided to conduct a deeper review of GCash parent firm Globe Fintech Innovations, Inc.’s plan to take full ownership of Electronic Commerce Payments Inc. (ECPay).
In a statement on Friday, the PCC said that it had started a Phase II review of Globe Fintech’s move to acquire 100 percent of ECPay, ownership of which is currently shared with Payment One Inc.
Globe Fintech, also known as Mynt, notified the PCC in April this year that it was looking to make ECPay a wholly-owned subsidiary. The transaction had been flagged late in 2023 when Globe Telecom Inc. said it was selling its ECPay stake to Mynt for P2.3 billion.
Globe Telecom is one of the firms behind Mynt.
The PCC, which is mandated by law to review mergers and acquisitions, among others, to uphold consumer welfare, said that a Phase 1 review by its Mergers and Acquisitions Office had “identified potential competition concerns in several key markets.”
These include “payment services, aggregator services, and merchant solutions” that “involve potential impacts on competition in retail and digital payment channels, such as sari-sari stores, retail outlets, and online payment systems.”
A Phase II was subsequently initiated, and the parties involved were issued a Request of Information last Sept. 18.
The additional review, the PCC said, officially began a day later, “with the objective of conducting a more detailed assessment of whether the transaction may substantially lessen competition in the relevant markets.”
“As part of this ongoing Phase II review, the PCC is inviting stakeholders and the general public to submit comments on the potential impact of this acquisition,” it added. “Comments should address how the transaction may affect competition, quality, or the availability of services in the relevant markets.”
These can be submitted up to Dec. 8 via email to mergers@phcc.gov.ph, with the subject title “Comments on Mynt and ECPay,” mailed to the PCC office on the 25th floor of Tower 1 at the Vertis North Corporate Center in Quezon City, or online via bit.ly/CFC-Mynt-ECPay.
“The PCC encourages the public to contribute to the review process, as the feedback will be vital in determining the potential effects of the acquisition on market competition and consumer welfare,” the commission said.
Based on the antitrust watchdog’s rules, a Phase II review will take 60 days, after which it will post a decision. No action after that period will mean that the proposed transaction is approved.
A Phase 1 review, in contrast, takes only 30 days before a ruling is issued. No action after that also means approval of the deal.
Mynt, through G-Xchange, Inc., operates GCash, the most popular e-wallet in the country. Its valuation more than doubled to $5 billion in August after Globe parent firm Ayala Corp. increased its stake and Japan’s Mitsubishi Corp. also announced an investment.
ECPay, meanwhile, is said to be the leading electronic customer purchase and payment systems provider in the Philippines.
Globe and Ayala officials were not immediately available for comment.
Globe’s shares closed unchanged at P2,100 apiece while Ayala’s fell by 17.50, or 2.65 percent, to P642 per share on Friday amid a 1.21-percent plunge for the benchmark Philippine Stock Exchange index.
