The Philippine Competition Commission (PCC) has cleared JERA Asia Private Limited’s proposal to buy 27% of Aboitiz Power Corporation, its parent firm Aboitiz Equity Ventures (AEV) said in a disclosure to the Philippine Stock Exchange.
AEV cited PCC’s acknowledgment letter issued on Thursday stating that JERA’s purchase, which includes the sale of AEV’s 25.01% ownership in its power arm, “does not breach applicable the compulsory notification thresholds that are currently in effect.”
JERA’s proposed acquisition of 1.84 billion shares of AboitizPower for $1.46 billion was announced on September 27. Both firms said then that they were exploring various areas for collaboration including the potential joint development of power projects, including those using liquefied natural gas, collaboration on new generation technologies, and potential participation in aspects of plant operation and management.
The deal is subject to approval and ratification by AEV shareholders through a Special Stockholders’ meeting on December 10.
AboitizPower, which earlier announced a Php190-billion investment for renewable energy (RE) projects until 2030, had said that JERA is a “key enabler” in its RE expansion plan.
Headquartered in Tokyo, JERA is 50% owned by the Tokyo Electric Power Company (TEPCO), which partly owns Team Energy. Team Energy owns and operates Units 1 and 2 of the Pagbilao coal-fired power plant, in which AboitizPower’s Therma Luzon, Inc. serves as its independent power producer administrator.
JERA’s Philippine affiliate, TPEC Holdings Corporation, is a joint venture partner of AboitizPower’s Therma Power, Inc., in Pagbilao Energy Corporation.