MANILA - The country's antitrust watchdog has cleared the share purchase by Thailand’s Bank of Ayudhya of 50 percent of SB Finance Company, the consumer loan subsidiary of Security Bank.
The Philippine Competition Commission said the deal was unlikely to lessen competition in the market for unsecured personal loans nationwide.
"Given the limited market share of the merged entity, PCC also determined that the parties behind the transaction would have no incentive to raise interest rates and decrease the quality of services unilaterally," the PCC said.
Once the deal is finalized Bank of Ayudhya will own 50 percent of SB Finance while Security Bank will retain the 49.54 percent interest.
Bank of Ayudhya is a subsidiary of Mitsubishi UFJ Financial Group of Japan which has an extensive banking portfolio.
SB Finance Company lends money to mass market consumers, and specializes in unsecured personal loans.
Its parent entity is publicly-listed lender, Security Bank.