U.P.

L A W C E N T E R
OFFICE of (he W T I O N W . A D W K t S T R A T I V E REGISTER
A d m i n i s i r a t i w R u l e s and Regulations

Rcinil)lic <>i ihc Philippines

P H I L I P P I N E C O M P E T I T I O N C O M M I S S I O N

2/F D A P liuildnig, San MiniK-l Avenue, ()ilii;as CcnWv, VASIU; C'ily HiOO
Tel./Fax: (632) 6312129 Email:queries@phcc.fiov.ph Website: www.phcc.gov.ph

PCC MEMORANDUM C I R C U L A R NO. 16-003

To : A L L CONCERNED

Subject : F I L I N G F E E S FOR M E R G E R NOTIFICATION AND R E V I E W

X- X

A s approved b y the C o m m i s s i o n i n its m e e t i n g o n D e c e m b e r 22, 2 0 1 6 , the following filing fees

for M e r g e r N o t i f i c a t i o n and R e v i e w are h e r e b y adopted:

Stage/Phase Filing Fee

U p o n filing o f t h e N o t i f i c a t i o n F o r m Php250,000.00
C o m m e n c e m e n t o f a Phase 2 R e v i e w 1% o f 1 % o f t h e v a l u e o f t h e t r a n s a c t i o n w h i c h
s h a l l n o t b e less t h a n P h p 1 , 0 0 0 , 0 0 0 . 0 0 n o r
exceed Php5,000,000.00.

A. Determining the Value of the Transaction

The value o f t h e t r a n s a c t i o n s h a l l b e c o m p u t e d b a s e d o n t h e f o l l o w i n g s c h e d u l e , w h i c h e v e r i s
higher:

1. I f t h e t r a n s a c t i o n is o n e o f m e r g e r o r a c q u i s i t i o n o f assets i n t h e P h i l i p p i n e s :
a ) t h e a g g r e g a t e v a l u e o f t h e assets i n t h e P h i l i p p i n e s b e i n g a c q u i r e d o r
b ) t h e g r o s s r e v e n u e s g e n e r a t e d i n t h e P h i l i p p i n e s b y assets a c q u i r e d i n t h e P h i l i p p i n e s .

2. I f t h e t r a n s a c t i o n is o n e o f m e r g e r o r a c q u i s i t i o n o f assets o u t s i d e t h e P h i l i p p i n e s :
a ) t h e a g g r e g a t e v a l u e o f t h e assets i n t h e P h i l i p p i n e s o f t h e a c q u i r i n g e n t i t y ; o r
b ) t h e g r o s s r e v e n u e s g e n e r a t e d i n o r i n t o t h e P h i l i p p i n e s b y t h o s e assets a c q u i r e d o u t s i d e
the Philippines.

Page 1 of3
 3. I f t h e t r a n s a c t i o n is o n e o f m e r g e r o r a c q u i s i t i o n o f assets i n s i d e a n d o u t s i d e t h e P h i l i p p i n e s :
a ) t h e a g g r e g a t e v a l u e o f t h e assets i n t h e P h i l i p p i n e s o f t h e a c q u i r i n g e n t i t y ; o r
b ) t h e a g g r e g a t e g r o s s r e v e n u e s g e n e r a t e d i n o r i n t o t h e P h i l i p p i n e s b y assets a c q u i r e d i n
t h e P h i l i p p i n e s a n d a n y assets a c q u i r e d o u t s i d e t h e P h i l i p p i n e s c o l l e c t i v e l y .

4 . I f the transaction is o n e o f acquisition o f v o t i n g shares o f a c o r p o r a t i o n o r o f an interest i n

a non-corporate entity:
a ) t h e a g g r e g a t e v a l u e o f t h e assets i n t h e P h i l i p p i n e s t h a t are o w n e d b y t h e c o r p o r a t i o n
o r n o n - c o r p o r a t e e n t i t y o r b y e n t i t i e s i t c o n t r o l s , o t h e r t h a n assets t h a t a r e s h a r e s o f a n y
o f those corporations; or
b ) t h e g r o s s r e v e n u e s f r o m s a l e s i n , i n t o , o r from t h e P h i l i p p i n e s o f t h e c o r p o r a t i o n o r n o n
entity or b y the entities it controls.

5. I f the transaction is o n e o f j o i n t v e n t u r e :
a ) t h e a g g r e g a t e v a l u e o f t h e assets t h a t w i l l b e c o m b i n e d i n t h e P h i l i p p i n e s o r c o n t r i b u t e d
into the j o i n t venture; o r
b ) t h e g r o s s r e v e n u e s g e n e r a t e d i n t h e P h i l i p p i n e s b y assets t o b e c o m b i n e d o r c o n t r i b u t e d
into the proposed j o i n t venture.

I n c o m p u t i n g t h e assets i n j o i n t v e n t u r e t h e f o l l o w i n g s h a l l b e i n c l u d e d :

a l l assets w h i c h a n y e n t i t y c o n t r i b u t i n g t o t h e f o r m a t i o n o f t h e j o i n t v e n t u r e h a s
agreed to transfer, o r for w h i c h agreements have been secured for the j o i n t v e n t u r e
t o o b t a i n at a n y t i m e ; a n d

any a m o u n t o f credit o r any obligations o f the j o i n t venture w h i c h any entity

c o n t r i b u t i n g t o t h e f o r m a t i o n h a s a g r e e d t o e x t e n d o r g u a r a n t e e , at a n y t i m e .

B. Determining the Value of Assets and Gross Revenues

T h e a g g r e g a t e v a l u e o f assets i n t h e P h i l i p p i n e s s h a l l b e b a s e d o n t h e l a s t r e g u l a r l y p r e p a r e d
b a l a n c e s h e e t o r t h e m o s t r e c e n t a u d i t e d financial s t a t e m e n t s i n w h i c h t h o s e assets a r e a c c o u n t e d
f o r . T h e g r o s s r e v e n u e s fix)m s a l e s o f a n e n t i t y s h a l l b e t h e a m o u n t stated o n t h e l a s t r e g u l a r l y
prepared annual statement o f i n c o m e and expense o f that entity.

C. Payment of Fees

T h e filing f e e s h a l l b e p a i d b y t h e a c q u i r i n g e n t i t y . P a y m e n t o f t h e filing fees f o r t h e

N o t i f i c a t i o n F o r m s h o u l d b e m a d e u p o n s u b m i s s i o n o f t h e s a m e . F e e s m a y be p a i d b y m a n a g e r ' s
cheque, payable to the P h i l i p p i n e C o m p e t i t i o n C o m m i s s i o n .

T h e C o m m i s s i o n shall send a n i n v o i c e t o the m e r g e r parties u p o n a n n o u n c e m e n t o f its

d e c i s i o n t o proceed to a Phase I I r e v i e w . P a y m e n t o f t h e fee m u s t be m a d e w i t h i n ten ( 1 0 ) days
f r o m the date o f the invoice.

U.P. L A W C E N T E R
OFFICE of Ihe NATIONAL ADMINISTRATIVE REGISTER
A d m i n i s i r a i i v e R u l e s and Regulations

J A N 0 92 0 1 7
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EC
D. Effectivity

T h i s C i r c u l a r s h a l l t a k e e f f e c t a f t e r fifteen ( 1 5 ) d a y s f r o m p u b l i c a t i o n i n a n e w s p a p e r o f
general circulation.

Pasig City, Philippines.

December 2 0 1 6

Arsenic M. Balisacan
Chairman

U.P. L A W C E N T E R
OFFICE o' the W T t O N A L AOMINtSTRATIVE REGISTER
Admmijirative Rules and Regulaiions

J A N 0 9 2 0 1 7
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ECCIE
TIME: