Section 51Republic Act No. 265 as amended;, Sec./Art. 51

Mergers and Consolidations. The provisions of this Book Two shall apply to any merger, consolidation, syndicate or any other combination of firms, associations, partnership or other forms of business organization that will result in ownership or control by persons or entities that are not Philippine nationals or have foreign equity participation, of more than forty per cent (40%) of the outstanding capital of whatever organizations results from the merger, consolidation, syndicate or other combination.