The Philippine Competition Commission (PCC) has given its official clearance for Philippine Veterans Bank to acquire a controlling stake in UCPB Savings Bank, marking a significant development in the country's banking landscape.
Transaction Details and Regulatory Approval
In a decisive move, the PCC ruled that the P2.7-billion acquisition of 97.55 percent of UCPB Savings Bank by Philippine Veterans Bank will not negatively impact competition within the Philippine banking industry. The regulatory body issued its formal decision on October 28, 2025, following thorough review of the proposed transaction.
The acquisition stems from a share purchase agreement signed on July 8, 2025 between Veterans Bank and Land Bank of the Philippines, which currently serves as the parent company of UCPB Savings Bank. Both financial institutions submitted their separate notifications to the competition watchdog, with Landbank filing on July 16 and Veterans Bank following on July 24.
Privatization Background and Market Impact
This acquisition represents a crucial step in the privatization process of UCPB Savings Bank, which operates under Memorandum Order 28 signed by President Ferdinand Marcos Jr. in August 2024. The presidential directive established the framework for the bank's transition to private ownership.
The PCC determined that the transaction poses no competitive concerns primarily due to the limited market presence of both institutions and their differing business segments. This assessment ensured that the consolidation would not lead to reduced competition or consumer choice in the banking sector.
Future Implications for Philippine Banking
The approval signals continued consolidation within the Philippine financial industry while maintaining healthy competition. The PCC's careful evaluation process demonstrates the regulatory body's commitment to ensuring that mergers and acquisitions do not adversely affect market dynamics or consumer interests.
With this clearance, Philippine Veterans Bank moves forward with its strategic expansion plans, while UCPB Savings Bank progresses in its privatization journey as mandated by the government's economic policy directives.
