The Philippine Competition Commission (PCC) approved the proposed joint venture between subsidiaries of Mitsui & Co. Ltd. (Mitsui) and KDDI Corp. (KDDI), according to a decision dated April 13, 2023.
The joint venture between Mitsui and KKDI involves merging their subsidiaries Relia and KDDI Evolva, respectively.
KDDI Evolva will be the surviving entity, aligning with Mitsui’s strategy for Relia strategy to be a wholly-owned subsidiary.
The PCC said the transaction would not lessen competition in the relevant market, identified as the provision of Secure Access Service Edge (SASE) for global integrated network solutions.
SASE combines security tools and networking technology to provide secure remote access.
It said of the several factors supporting the approval, the market has numerous competitors offering similar services, which is good sign of a healthy market environment.
It also mentioned how customers can choose from alternative providers and the low barriers to entry where new businesses can easily enter the market, and existing ones can expand.
The commission noted that while there is a vertical relationship between the parties involving the resale of SASE licenses, the relationship does not significantly impact competition due to the presence of alternative providers and services in the market.
As mandated by the Philippine Competition Act, the PCC is committed to fostering a competitive business environment by ensuring that mergers and acquisitions contribute to efficient markets and consumer welfare.