MANILA - The Philippines' antitrust watchdog on Monday voided businessman Dennis Uy's acquisition of a Dutch holding company that held a majority stake in Negros Navigation Co, the parent of shipping firm 2GO, for failing to disclose the transaction to the body.

The Philippine Competition Commission (PCC) also fined Uy and KGLI NM P19.6 million pesos. The two parties can still proceed with the transaction provided they submit it to the PCC for review, said the agency's spokesperson, Mercedes Torrijos.

"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.

The 2016 acquisition, made by Uy's Udenna Corp, was meant to give the Davao-based businessman a foothold in the logistics businesses.

It was the first deal to be voided by the PCC for non-disclosure.

Udenna Vice President for Corporate Affairs Atty. Adel Tamano meanwhile said there was nothing wrong with the deal, which was signed one month after the Implementing Rules and Regulations of the Philippine Competition Act took effect.

“Udenna acted in good faith in consummating the transaction based on its interpretation of the newly-issued rules of the PCC, which in Udenna’s opinion are ambiguous. At the time of completion of the subject transaction, the PCC Rules were new, and Udenna had no guidelines, interpretative rulings or precedents to rely on,” Tamano said.

The decision to declare the transaction void and the P19.6 million penalty were “unduly harsh and uncalled for,” he said.

"There is no continuing direct harm to the market by the subject transaction that the void penalty needs to prevent," he added.

Tamano said Udenna has sufficient basis to challenge the decision either by filing a Motion for Reconsideration with the PCC or through a petition to the Court of Appeals.

Davao-based Uy has been making a lot of acquisitions under the Duterte administration. The founder of fuel retailer Phoenix Petroleum recently announced that he was also acquiring the Philippine operations of Japanese convenience store chain FamilyMart.

• Why FamilyMart acquisition makes perfect sense for Dennis Uy
• Philippines new tycoon rises for Duterte's Davao