Gokongwei acquired 100% of Tantoco’s Super center worth 18B Pesos, trademark and trade name not included

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John Gokongwie Chairman of JG Summit Holdings

Now it’s a done deal!

Gokongwei’s Robinsons Retail Holdings Inc. acquired the P18 billion worth of shares of Rustan’s Super centers which is composed of 100 percent of the issued and outstanding capital shares in Rustan’s Super centers.

However, RUSTAN Commercial Corp. (RCC) still keeps the ownership of the Rustan’s trademark and trade name in light of the Gokongwei group’s acquisition of the supermarket business previously owned by the Tantoco family.

RCC said, “the Rustan trademark and trade name was “never a part” of the P18-billion deal that will allow Robinsons Retail Holdings, Inc. to take over supermarket operator Rustan Super centers, Inc. (RSCI).” The Tantoco family used to own RSCI, but eventually sold the business to the Dairy Farm group.

The country’s antitrust body approved Robinsons Retail Holdings Inc.’s acquisition of Rustan’s Supercenters Inc.

With the Philippine Competition Commission’s (PCC) approval, Robinson’s Retail now takes full control of all the Rustan’s Super centers and these are the 75 branches of Marketplace by Rustan’s Supermarkets, Shopwise, Shopwise Express and Well come in the Philippines.

The Mergers and Acquisitions Office of PCC found the transaction “does not result in the substantial lessening of the competition in the relevant market.”Apart from that, PCC also cited that even after the buyout, a sufficient number of players remains in the market.

Philippine Competition Commission (PCC)  said, “the 46 branches out of all stores from both firms overlap and operate in the same area to date, operate under the one-stop shop grocery retail market.”

Under the Philippine Competition Act, the PCC is mandated to review mergers and acquisitions that meet the thresholds to ensure that deals will not harm consumers’ interest. From the time that PCC is established, it has received 153 notifications with a combined worth of P2.41 trillion.

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