The Philippine Competition Commission (PCC) has announced that it found no competition concerns in the Prime Infrastructure–First Gen gas and liquefied natural gas (LNG) transaction, following a Phase 1 review of interlinked horizontal and vertical energy markets.

In an announcement dated December 3, PCC said that Prime Infrastructure Capital, Inc.’s acquisition of majority stakes in seven First Gen holding companies “is unlikely to result in a substantial lessening of competition in any of the identified markets,” 

The assets covered in the deal include the 1,000-megawatt Santa Rita, 500-MW San Lorenzo, 450-MW San Gabriel, and 97-MW Avion power plants, as well as the planned 1,200-MW Santa Maria project and an interim offshore LNG terminal. The share purchase agreement was signed in July and valued at about PHP 50 billion. 

Prime Infrastructure is part of the Razon & Co. Inc. group and is active in infrastructure, water, and energy investments. Through its subsidiaries Prime Energy Resources Development B.V. and Prime Oil and Gas, Inc., the group also holds a combined 45% participating interest in the Service Contract 38 Consortium operating the Malampaya Gas Field. First Gen, under Lopez, Inc., operates geothermal, hydro, wind, solar, and natural gas power plants.

Market impact seen as limited

According to the PCC’s Mergers and Acquisitions Office, the transaction was assessed across two horizontal markets and four vertical markets.

In renewable energy generation, the PCC said the parties will become the largest firm after the deal, “but only by a minimal margin,” with the market remaining unconcentrated due to “numerous existing and prospective players.”

In the retail electricity supply market, the regulator found that the parties’ combined share remains “significantly below major players,” with competition sustained by customer switching and multiple licensed suppliers.

For vertically linked markets, the Commission said there is no ability or incentive for the parties to engage in foreclosure strategies.

The PCC also compared the deal with a separate LNG and power acquisition approved in December 2024 involving Meralco PowerGen Corp., Therma NatGas Power Inc., and San Miguel Global Power Holdings Corp., where behavioral conditions were imposed due to coordination and foreclosure risks. No similar risks were identified in the Prime–First Gen transaction.

Do you think the PCC’s findings are enough to allay concerns over consolidation in the gas-to-power sector? Share your views.

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