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CCS CLEARS PROPOSED
ACQUISITION OF
DUPONT’S GLOBAL
NEOPRENE BUSINESS BY
DENKA AND MITSUI
MANUFACTURING
| ACQUISITION
Case Team Members:
Cindy Chang
Justina Sim
Kenneth Khoo
Liu Jing
Toh Shihua
Winnie Ching
CR is a general-purpose synthetic rubber
that is widely used in the manufacturing
industry to make adhesives, car parts,
general industrial products and other
products. Currently all supplies of CR in
Singapore are imported, and over 90%
of these come from Denka, Mitsui and
DuPont (collectively the “Parties”). As such,
CCS examined whether there would be a
substantial lessening of competition in
the market for the global supply of CR to
Singapore, if the Proposed Transaction is
carried into effect.
In its assessment, CCS sought feedback
from industry stakeholders, including
customers and competing global
manufacturers of CR, none of whom
raised concerns with the Proposed
Transaction. Af ter reviewing the
collective information, CCS concluded
that notwithstanding the high combined
market share of the Parties in Singapore,
the Proposed Transactionwill not infringe
section 54 prohibition of the Competition
Act (Cap. 50B) (the “Act”) which prohibits
mergers that have resulted, or may
be expected to result, in a substantial
lessening of competition in Singapore,
for the following reasons.
Denka Performance Elastomer LLC, a
joint venture between Denki Kagaku
Kogyo Kabushiki Kaisha (“Denka”) and
Mitsui & Co., Ltd. (“Mitsui”), proposed
an acquisition of the chloroprene
rubber (“CR”) business of E.I. du Pont
de Nemours and Company (“DuPont”)
(the “Proposed Transaction”). CCS has
cleared this proposed acquisition.
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GUIDING YOU TO NEW HEIGHTS
CCS ANNUAL REPORT 2015-2016