The Philippine Competition Commission (PCC) has given a crucial green light to a significant consolidation in the country's energy sector. The antitrust body announced that it found no competition concerns following its initial review of the planned joint ventures between Prime Infrastructure Capital Inc. (Prime Infra) and First Gen Corporation.
Phase 1 Review Finds No Competitive Harm
In a decision published on December 3, 2025, the PCC concluded its Phase 1 assessment of the linked transactions. The watchdog examined the potential effects on two horizontal and four vertical markets within the energy landscape. Its comprehensive analysis determined that the deal is unlikely to substantially lessen competition.
The core of the transaction involves Prime Infra's acquisition of majority stakes in seven subsidiary companies under First Gen. These units hold vital interests in several gas-fired power plants and a strategically important Liquefied Natural Gas (LNG) terminal located in Batangas.
Market Share Analysis and Risk Assessment
The PCC's review provided detailed insights into the market dynamics. It noted that the transaction would result in only minimal changes to market shares within the renewable energy segment. Furthermore, the combined entity's share in the retail electricity supply market was assessed to be low.
A critical part of the review involved evaluating foreclosure risks—the potential for the merged entity to restrict competitors' access to essential inputs or markets. The commission ruled out such risks in this case, finding no evidence that the joint ventures would lead to anti-competitive exclusionary practices.
Implications for the Philippine Energy Sector
This clearance paves the way for the consolidation of significant energy assets under the partnership. The move is expected to streamline operations and potentially enhance investment in the country's gas and LNG infrastructure, which is seen as a crucial bridge fuel in the transition to a cleaner energy mix.
The PCC's approval, based on its Phase 1 review, allows the deal to proceed without the need for a more in-depth and lengthy Phase 2 investigation. This decision provides regulatory certainty for the two major companies as they move forward with their strategic alliance in the power sector.
