The Philippine Competition Commission (PCC) has approved the acquisition of a majority stake in UCPB Savings Bank, Inc. by the Philippine Veterans Bank.

The antitrust body determined that the purchase does not undermine competition within the local banking sector.

According to the PCC, Veterans Bank acquired approximately 97.55% of the savings bank’s total issued shares for PHP 2.7 billion.

The transaction stems from a share purchase agreement dated 8 July 2025. It was signed between Veterans Bank and the Land Bank of the Philippines, the ultimate parent entity of UCPB Savings.

This follows the savings bank’s privatisation under Memorandum Order No. 28, issued by President Ferdinand Marcos Jr. in August 2024.

In its review, the PCC stated it “found no horizontal or vertical relationships between the Veterans Bank notifying group and UCPB Savings”.

The Commission noted that the institutions cater to different customer segments and operate under distinct classifications. Veterans Bank functions as a private commercial bank.

UCPB Savings, meanwhile, operates as a domestic thrift bank that provides deposits, loans, and treasury services.

The regulator concluded that even under a broad market definition covering core services, the transaction is “unlikely to result in a substantial lessening of competition.”

It cited the parties’ small market shares and the presence of numerous competitors in each segment as key factors.

“This clearance underscores PCC’s role in ensuring that consolidation in the banking sector proceeds without harming competition,” the PCC stated. “In transactions involving differentiated banking classifications and overlapping regulatory scopes, the commission remains committed to safeguarding consumer welfare and promoting a level playing field”.

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