Philippines approves Aramco Asia acquisition of a 25% stake in Unioil

Manila: The country's competition regulator has approved the proposed acquisition by Aramco Asia Singapore Pte. Ltd. of a 25% stake in Unioil Petroleum Philippines, Inc. and Unioil Energy Pte. Ltd., according to an official statement released by the agency.

The Philippine Competition Commission (PCC) concluded that the transaction is unlikely to substantially lessen competition in the relevant markets.

Competition

In its analysis, the PCC highlighted several factors supporting its clearance of the deal, noting that “the parties have limited market shares, there is substantial competition from other well-established players, and the entry of new competitors is anticipated to be timely, sufficient, and likely due to the low barriers to entry.”

These considerations align with the PCC’s mandate under the Philippine Competition Act to prevent anti-competitive effects from mergers and acquisitions (M&As), including those involving foreign entities (Philippine Competition Commission, 2024).

Aramco Asia, a Singapore-based affiliate of Saudi Arabian Oil Co. (Saudi Aramco), provides sales, marketing, procurement, and logistics services in the region.

Fuel retailer

Meanwhile, Unioil Petroleum operates as a fuel retailer in the Philippines, and Unioil Energy functions as a trading company responsible for importing gasoline and diesel fuel into the country (Unioil Corporate Profile, 2024).

The proposed acquisition represents Saudi Aramco’s renewed entry into the Philippine oil market after nearly three decades.

Strategic return

In February 2025, Aramco Asia and Unioil Petroleum announced their definitive agreement for the stake sale, marking Saudi Aramco’s strategic return since its 40% divestment from Petron Corporation in 1994 (Reuters, February 2025).

The PCC’s review follows its updated notification thresholds earlier this year, which now require companies involved in M&A deals with a party size of at least ₱8.5 billion and a transaction size of ₱3.5 billion to notify the commission for evaluation (Philippine Competition Commission, 2025).

This framework ensures rigorous scrutiny of deals that might impact market competition and consumer welfare.