Scribd
Upload
138 views1 page

PCC Case No. M-2018-002 (MAO Case No. M-39-2017)

This document summarizes a proposed acquisition by Chelsea Logistics Holdings Corporation of shares in KGLI-NM Holdings, Inc. Chelsea is a subsidiary of Udenna Corporation engaged in shipping and logistics. The acquisition would give Chelsea majority ownership of 2GO Group. The relevant market is containerized and breakbulk cargo shipping in the Visayas region. The commission found the acquisition would result in a post-transaction monopoly with substantial lessening of competition, as Chelsea would eliminate a competitor and barriers to entry are high.

Uploaded by

Jay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
138 views1 page

PCC Case No. M-2018-002 (MAO Case No. M-39-2017)

This document summarizes a proposed acquisition by Chelsea Logistics Holdings Corporation of shares in KGLI-NM Holdings, Inc. Chelsea is a subsidiary of Udenna Corporation engaged in shipping and logistics. The acquisition would give Chelsea majority ownership of 2GO Group. The relevant market is containerized and breakbulk cargo shipping in the Visayas region. The commission found the acquisition would result in a post-transaction monopoly with substantial lessening of competition, as Chelsea would eliminate a competitor and barriers to entry are high.

Uploaded by

Jay
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOCX, PDF, TXT or read online on Scribd
You are on page 1/ 1

PCC Case No. M-2018-002 (MAO Case No.

M-39-2017)

In the Matter of the Proposed Acquisition by Chelsea Logistics Holdings Corporation of


Shares in KGLI-NM Holdings, Inc.

Chelsea Logistics Holdings Corporation, KGLI-NM Holdings, Inc.

Facts:

There has been a proposed acquisition of Chelsea Logistics Holdings Corporation of shares in
KGLI-NM Holdings, Inc. and gain majority of ownership or 52.98% over 2GO Group.

Chelsea is a wholly owned subsidiary of UDENNA CORPORATION, is a corporation registered


with the Philippine SEC on August 2016. Chelsea is engaged in the shipping transport business
and logistics. Udenna is Chelsea’s UPE, a domestic company located in Davao City.

Chelsea’s subsidiaries:
a. Chelsea Shipping Corp
b. Starlite Ferries
c. Worklink Services, Inc.
d. Trans-Asia Shipping Lines, Inc.

While KGLI-NM Holdings, Inc. is a domestic corporation borne out of strategic partnership
between Negros Holdings and Management Corp and KGL Investment BV, a private liability
company organized under the laws of Netherlands. KGLI-NM was created solely to own shares
in Negros Navigation Company, Inc. Negros Holdings is the UPE of KGLI-NM. One of Negros
Navigation’s subsidiaries is 2GO Group, Inc.

The relevant geographic market is Visayas Region. The relevant market product is
containerized cargo shipping and breakbulk cargo shipping, long-haul and short-haul passenger
shipping.

Held:

The commission finds post-transaction will results to monopoly. Further, there will likely be
substantial lessening of competition as no other entity provides or will provide a sufficient
competitive constraint on the parties.

The acquisition eliminates competitor that was previously source of competitive constraint.
There is a strong likelihood of price increase. Barriers to entry are high due to high market
concentration. Entry into the relevant market will not be timely, likely, and significant such that a
new entrant will not serve as a competitive constraint to the parties.

The ownership by Udenna through Chelsea of Trans-Asia gives rise to the horizontal overlaps
with 2GO which result in the finding of substantial lessening of competition.

You might also like