PCC Greenlights Major Banking Acquisition
In a significant move for the Philippine financial sector, the Philippine Competition Commission (PCC) has given its official clearance for Philippine Veterans Bank to acquire a controlling stake in UCPB Savings Bank. The regulatory approval, granted on October 28, 2025, marks a crucial step in the ongoing consolidation within the country's banking industry.
Transaction Details and Background
The acquisition involves Philippine Veterans Bank purchasing 97.55 percent of the total issued shares of UCPB Savings Bank from Land Bank of the Philippines. The share purchase agreement was finalized on July 8, 2025, with the total consideration amounting to approximately P2.7 billion.
This transaction follows the privatization of UCPB Savings Bank under Memorandum Order No. 28 issued by President Ferdinand Marcos, Jr. on August 6, 2024. Both parties submitted their notification forms to the PCC in July 2025, with Landbank filing on July 16 and Veterans Bank following on July 24.
Veterans Bank operates as a private commercial bank offering comprehensive financial services including deposit-taking, loans, trade finance, and treasury services. The institution also owns New Rural Bank of Agoncillo, Inc., located in Batangas. UCPB Savings Bank functions as a domestic thrift bank, providing similar but more limited services within its regulatory scope.
Competition Assessment and Market Impact
The PCC conducted a thorough review of the proposed acquisition and found no competition concerns. The commission determined that there were no horizontal or vertical relationships between the two banking groups that would negatively impact market competition.
According to the PCC analysis, the two banks serve different customer segments and operate under distinct banking classifications. Veterans Bank falls under the universal and commercial banking category, while UCPB Savings operates as a thrift bank, with both governed by different regulatory frameworks under the Bangko Sentral ng Pilipinas.
Even when considering a broad market definition that includes core banking services like deposits and loans across all banking types, the transaction is unlikely to substantially lessen competition. The PCC cited the parties' small market shares and the presence of numerous competitors in each segment as key factors supporting this conclusion.
This clearance demonstrates the PCC's commitment to ensuring that consolidation in the banking sector proceeds without harming competition. The commission remains focused on safeguarding consumer welfare and promoting a level playing field, particularly in transactions involving differentiated banking classifications and overlapping regulatory scopes.
