PRESS RELEASE
19 December 2025

PCC approves Metro Pacific Agro Ventures’ acquisition of Franklin Baker shares

The Philippine Competition Commission (PCC) on October 23 approved the proposed acquisition by Metro Pacific Agro Ventures, Inc. (MPAV), a wholly owned subsidiary of Metro Pacific Investments Corporation, of the total outstanding shares of stock of Franklin Baker Company of the Philippines (Franklin Baker).

MPAV is a Philippine agri‑food company engaged in the production, processing, and distribution of dairy, fresh produce, and coconut‑based products. Its operations include modern dairy farming, hydroponic agriculture, and the manufacture of coconut goods for both domestic and international markets, with a coconut production facility, through its affiliate Axelum Resources Corporation, located in Medina, Misamis Oriental.

Franklin Baker is a Philippine‑based manufacturer and exporter of value‑added coconut products, supplying desiccated coconuts, coconut water, coconut cream, and coconut milk to global markets. Its production facilities are located in San Pablo, Laguna and Santa Cruz, Davao del Sur.

The PCC’s Mergers and Acquisitions Office (MAO) reviewed the global markets for desiccated coconuts, coconut water, coconut cream, and coconut milk, as well as the supply of mature raw coconuts in Mindanao. Given initial concerns about potential monopsony effects in raw coconut sourcing, where a single buyer effectively controls the market, the transaction proceeded to a Phase 2 review.

Upon evaluation, the MAO found that the transaction is unlikely to result in a substantial lessening of competition in the relevant markets. The manufacture of desiccated coconuts, coconut water, coconut cream, and coconut milk is global in scope, and affected by factors such as the presence of numerous competing global suppliers, and the price sensitivity of buyers, which limits the ability or incentive of the parties to unilaterally raise prices or reduce product quality. In the procurement of mature raw coconuts in Mindanao where the parties’ suppliers are located, initial monopsony concerns were addressed through additional data analysis and field missions conducted in Northern Mindanao and the Davao Region. The presence of alternative purchasers, particularly copra manufacturers, who are the largest buyers and absorb a substantial share of supply, creates a countervailing demand that mitigates the risk of buyer dominance and ensures that coconut farmers continue to have multiple viable outlets for their produce.

This approval highlights PCC’s commitment to ensuring that consolidation in the agri‑food sector proceeds without harming competition. The Commission remains steadfast in safeguarding consumer welfare and promoting a level playing field across both domestic and global markets.

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REFERENCE:  
publicaffairs@phcc.gov.ph  
Public Affairs and Research Division
Communications and Knowledge Management Office
Philippine Competition Commission