PCC clears FPG-Mercantile merger
THE Philippine Competition Commission (PCC) said on Wednesday that it has cleared the proposed merger between nonlife insurers FPG Insurance Co., Inc. and The Mercantile Insurance Co., Inc.
In a statement, the PCC said its Mergers and Acquisitions Office Review Team found that the merger “likely poses no substantial lessening of competition in the relevant markets.”
“The parties’ combined market shares remain low, preventing them from unilaterally influencing market conditions or engaging in foreclosure strategies,” it added.
It added that they have multiple competitors, which gives consumers various options for insurance providers.
“The commission’s approval allows the merger to proceed, with the finding that competitive dynamics in the relevant markets will be preserved, thereby protecting consumer interests and maintaining a competitive marketplace,” it added.
The PCC was first notified about the merger on Nov. 19. Under the law, the agency reviews consolidations to ensure that they do not harm competition in their respective sectors.
For the Mercantile Insurance-FPG Insurance transaction, the PCC looked at the merger’s potential impact on the provision of aviation, fire, marine, motor car, casualty, engineering, personal accident, and suretyship nonlife insurance locally and globally.
The companies announced their plan in August last year. The merged company will be named FPG Mercantile and will have estimated combined gross written premiums of P10 billion, which would place it among the top four nonlife insurers in the Philippines, they earlier said. — Justine Irish D. Tabile
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