Dennis Uy fined P19.6M for non-disclosure of shipping holding firm purchase
The Philippine Competition Commission has slapped a P19.6 million fine on Davao-based businessman Dennis Uy?s Udenna Investments and Dutch firm KGL Investments for failure to notify the anti-trust watchdog of the sale involving 2Go Group Inc.
As a result, it nullified Udenna Corp.?s acquisition of KGL, which controls shipping firm Negros Navigation Co. Inc.
Nenaco owns 88.31 percent of integrated transport solutions provider 2Go Group.
?The law is clear: an agreement consummated in violation of the competition law’s compulsory notification requirement shall be fined and is considered void,? the PCC said in a decision.
The fine is equivalent to one percent of the transaction value.
?Respondents cannot justify their violation of the law by their rush to consummate the transaction since there were several potential buyers of the KGLI-BV shares. This is not legal excuse that warrants glossing over the compulsory requirements of the law. Otherwise, parties can easily circumvent the requirements of Sec. 17 by merely claiming they are in a rush to make the acquisition to beat other potential buyers,? PCC said.
The anti-trust watchdog, however, said Udenna could still proceed with the transaction provided it files the proper notification.