Clark Global City Corporation (CGCC) will acquire the company that has leasehold rights over a 177-hectare land in Clark Freeport Zone that includes Global Gateway Logistics City.
CGCC, a wholly-owned subsidiary of Udenna Corp, led by Davao-based businessman Dennis Uy, will buy shares of Cayman Islands-incorporated GGDC Holdings, the majority shareholder of Global Gateway Development Corp, which in turn controls the leasehold rights to the Clark land.
The Philippine Competition Commission (PCC), the country’s anti-trust commission, approved the acquisition on October 18. PCC said the acquisition “does not result in a substantial lessening of competition in the relevant market, since it does not appear that the merged firm has the ability or incentive to engage in foreclosure, and in any case, there appears to be sufficient post-acquisition competitive constraint from other market participants.”
Global Gateway Logistics City is a master planned mixed-use logistics and business center with 5.8 million square meters of planned floor space. It is divided into four zones, one of which is the Logistics Park that will cater to warehousing, distribution and light manufacturing operations.
According to the Board of Investments, the project’s estimated cost is US$200 million in horizontal infrastructure and $3 billion at full build-out.
Uy’s Udenna has been on an expansion binge of late. Udenna owns 70% of total shares of supply chain firm Chelsea Logistics Holdings Corp (CLC), which was listed in the stock exchange this year. CLC is also awaiting PCC approval to buy 100% shares of stocks of ferry company Starlite Ferries, Inc. (Starlite) and its subsidiaries.
Prior to this, CLC last March expanded its operations by acquiring a 28.15% indirect economic interest in integrated transport solutions provider 2GO Group, Inc., where Uy now sits as chairman.
Udenna also owns about 8% of listed oil company Phoenix Petroleum Philippines, Inc. – Roumina Pablo
