Stakeholders and interested parties are invited to submit comments on the impact to the market and to competition of the proposed acquisition by Metro Pacific Agro Ventures, Inc. (“MPAV”) of shares of Franklin Baker Company of the Philippines (“Franklin Baker”), which is currently under review by the Philippine Competition Commission. Comments may include possible effects of the transaction on the prices, quality, and range of products and services being offered by the transacting parties, and the transaction’s possible effects on coconut farmers.

Parties to the Transaction

The acquiring entity, MPAV, is a domestic holding company established to invest in the Philippine agricultural sector, with a strong focus on the dairy industry through its subsidiaries. MPAV also holds a stake in Axelum Resources Corporation (“Axelum”), a major manufacturer and exporter of coconut products with a manufacturing facility located in Medina, Misamis Oriental.

The acquired entity, Franklin Baker, is one of the country’s oldest and largest manufacturers and exporters of coconut products. It has manufacturing plants located in San Pablo, Laguna and Sta. Cruz, Davao del Sur. Majority of its shares are owned by Andorra Investments Corporation, a domestic holding company with subsidiaries engaged in asset holding and leasing activities related to Franklin Baker’s operations.

Both Axelum’s facility in Medina, Misamis Oriental and Franklin Baker’s plants in Sta. Cruz are located in Mindanao and source coconuts from various provinces in the region, including Davao, Lanao del Sur, and Agusan del Sur. While the two plants are situated in different parts of Mindanao, they operate within the same general sourcing region

Abstract of the Transaction

MPAV shall acquire outstanding shares of stock of Franklin Baker (the “Transaction”).

Review of the Transaction

During Phase 1 review, the Mergers and Acquisitions Office (“MAO”) was unable to conclude that the Transaction does not raise competition concerns and thus, recommended to proceed to Phase 2 review.

In Phase 2 review of the Transaction, the MAO shall conduct a more detailed and extensive assessment to determine whether the Transaction will lead to a substantial lessening of competition, particularly in the following relevant and affected markets:

1. Global manufacture of desiccated coconuts;
2. Global manufacture of coconut water;
3. Global manufacture of coconut cream;
4. Global manufacture of coconut milk; and the
5. Supply of mature raw coconuts within a 150-km radius from the processing facilities of Axelum and Franklin Baker in Sta. Cruz, Davao del Sur and Medina, Misamis Oriental.

More specifically, the MAO shall conduct a more in-depth assessment of potential consumer harm post-Transaction, including the likelihood of price increases, the exercise of monopsony power, reduction in purchases of raw coconuts, and increased bargaining leverage against coconut sellers.

Commencement of Phase 2 Review

The MAO issued a Notice to Proceed to Phase 2 review and Request for Information to the Parties to the Transaction on 08 August 2025. Phase 2 review of the Transaction commenced on 09 August 2025.

Submission of Comments

Stakeholders’ comments on these markets are critical to the MAO’s ongoing assessment. Comments may be submitted on or before 03 October 2025 via (i) e-mail to mergers@phcc.gov.ph with subject title “Comments on MPAV and Franklin Baker,” (ii) mail to Philippine Competition Commission located at 25^th floor, Tower 1, Vertis North Corporate Center, North Avenue, Quezon City 1105, or (iii) by answering the online form in this link.

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