The Philippine Competition Commission (PCC) has cleared the entry of a Norwegian green energy firm into the Philippine market.
The antitrust regulator approved last week the acquisition by Scatec Solar ASA of 100% shares in SN Power AS from Norfund of the Norwegian government. Scatec decided to purchase SN Power in October 2020 as part of its goal to improve capacity to 1.9 gigawatts across the globe in 2021.
In authorizing the buyout, the PCC concluded that competition in the renewable energy (RE) generation and power supply markets will stay in spite of the transaction. The agency further pointed out that there is no horizontal or vertical relationship between the acquiring party and the acquired firm, including the entities they operate.
SN Power has a joint venture with Aboitiz Power Corporation. The SN Aboitiz Power Group manages at least 12 power plants like the Ambuklao and Binga hydroelectric facilities in Benguet and the Magat hydroelectric plant at the Isabela-Ifugao border (photo above). It also has a floating solar facility in the Magat Reservoir.
With the PCC clearance, Scatec and SN Power can now push through with their transaction valued at US$1.16 billion (Php55.7 billion). The buyout marked the PCC’s first approved acquisition for this year, and in compliance with the new threshold of Php50 billion set under Republic Act 11494 or the Bayanihan to Recover As One Act.
Based in Oslo, Scatec Solar had no presence in the Philippines prior to the acquisition, but is involved in developing, building, and running RE plants globally, making it a respected entity in the renewables scene.
Meanwhile, SN Power develops and operates hydropower plants in Asia, Latin America, and Africa.