Marcos Approves Merger of ULFC and LLFC

President Ferdinand “Bongbong” Marcos Jr. has authorized the merger of United Coconut Planters Bank Leasing and Finance Corporation (ULFC) with the Land Bank of the Philippines Leasing and Finance Corporation (LLFC). LLFC will be the surviving entity following the merger, in compliance with relevant laws, rules, and regulations.

Both entities, which are attached to the Department of Finance, specialize in providing credit to businesses for equipment and asset acquisition. The merger is intended to streamline operations and eliminate redundant functions between the two corporations.

The Executive Order (EO) mandates the Governance Commission for GOCCs (GCG), along with LLFC and ULFC, to ensure compliance with Republic Act No. 11232 (Revised Corporation Code of the Philippines) and Republic Act No. 10667 (Philippine Competition Act). The merger will also result in the transfer of all assets and liabilities of United Coconut Planters Bank (UCPB) to the Land Bank of the Philippines (LBP), including its ownership shares in ULFC.

Pursuant to Section 5(a) of Republic Act No. 10149 (GOCC Governance Act of 2011), the GCG en banc determined that the merger is in the best interest of the State, aiming to eliminate unnecessary overlap in the mandates and functions of LLFC and ULFC.

President Marcos also directed the absorption of qualified officers and employees from ULFC affected by the merger. Additionally, the ULFC Board of Directors is authorized to provide a separation incentive package for affected personnel, using the rates prescribed under EO No. 150 (s.2021) and in accordance with other applicable laws, rules, and regulations.