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Proposed Acquisition by Samwoh Premix Pte. Ltd. of certain property and assets from Ley Choon Constructions and Engineering Pte. Ltd.
24 August 2016
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Reference: | CCS 400/006/16 |
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Notifying Parties: | Samwoh Corporation Pte. Ltd. (“Samwoh”). |
Notifying Date: | 13 July 2016 |
Summary of transaction: | (i) The names of the merger parties:
(ii) A description of the transaction: This sole notification by Samwoh relates to the proposed acquisition (the “Proposed Transaction”) by SWPPL of the following property and assets from LCCE:
(collectively, the “Disposal Assets”). (iii) A description of the business activities of the merger parties worldwide and in Singapore: SWPPL, Samwoh and the Samwoh group of companies The Samwoh group of companies is involved in the following areas of business in Singapore:
The Samwoh group of companies is also involved to some extent in the quarrying of building materials in Indonesia, and the provision of consultancy services and road condition surveys outside of Singapore. Disposal Assets and the Ley Choon group of companies The Plant and Equipment, which commenced production of asphalt premix in 2003, was the first asphalt premix manufacturing plant of the Ley Choon group of companies. The Ley Choon group of companies also operates a second asphalt premix manufacturing plant (the “LC Second Plant”) which does not form part of the Disposal Assets, and after the Proposed Transaction, the Ley Choon group of companies will continue to manufacture asphalt premix for supply in Singapore through the LC Second Plant. More broadly, the Ley Choon group of companies is involved in the following areas of business in Singapore:
(iv) A description of the overlapping goods or services, including brand names: SWPPL (through the Samwoh group of companies) and the Disposal Assets overlap only in the production of asphalt premix in Singapore. (v) A description of substitute goods or services: The predominant material used as a surfacing for roads and pavements in Singapore is asphalt premix, with recycled asphalt premix also increasingly used since 2010. (vi) The applicant’s views on: a. the definition of the relevant market(s); b. the way in which competition functions in this market; c. barriers to entry and countervailing buyer power; and d. the competitive effects of the merger (non-coordinated, coordinated and/or vertical effects, as relevant). Samwoh submits that the relevant market for the purposes of this notification is the market for the production of all asphalt premixes (including recycled asphalt premix) in Singapore. As a starting point, Samwoh submits that the Proposed Transaction does not result in any significant structural change to the relevant market for the production of asphalt premix in Singapore, if at all. In particular:
Non-coordinated effects Samwoh submits that non-coordinated effects will also not arise in the production of asphalt premix in Singapore as a result of the Proposed Transaction, for the following reasons:
Coordinated effects The characteristics of the relevant market preclude the possibility of anti-competitive coordinated effects, as:
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Decision: | The Proposed Transaction, if carried into effect, will not infringe the Section 54 prohibition |
Decision Date: | 24 August 2016 |