CCS Consults on the Proposed Merger between China CNR Corporation Limited and CSR Corporation Limited

13 January 2014

1. The Competition Commission of Singapore (“CCS”) is seeking feedback on the proposed merger between China CNR Corporation Limited (“CNR”) and CSR Corporation Limited (“CSR”) (the “Proposed Transaction”).

2. CCS received a notification for decision from CNR and CSR (collectively “the Parties”) with regard to the Proposed Transaction on 7 January 2015.

3. The notification is made under section 57 of the Competition Act (Cap. 50B) (“the Act”), which relates to section 54 of the Act prohibiting mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

The Parties

4. CNR focuses on the manufacture and refurbishment of rolling stock. CNR is also engaged in the manufacture of mechanical and electrical products and clean energy and environmental protection equipment, trading of raw materials, finance leasing of rolling stock and machines and equipment, and project management contracting service for urban rail and other related projects. A significant proportion of CNR’s revenue is derived from within the People’s Republic of China (the “PRC”).

5. CSR supplies rolling stock with a strong focus on the PRC. CSR has also expanded its business into other industries such as new energy equipment, new materials, AC transmission and industrial automation, and engineering machinery, as well as contracting business, financial leasing, finance business, assets investment and management, capital operation and other businesses.

6. In Singapore, CNR’s joint venture and CSR (through its subsidiaries) supply metros. CSR (through its subsidiary) also supplies engineering and maintenance vehicles in Singapore.

The Proposed Transaction

7. The Parties have submitted that they overlap in the supply of metros, a type of passenger rail vehicle within the rolling stock product segment of passenger rail vehicles, in Singapore. The Parties also supply maintenance and repair services and components for metros which they supply in Singapore. Such services are supplied as part of the metro procurement contracts and the Parties do not provide such services and products for metros manufactured by other suppliers in Singapore.

8. The Parties submit that the Proposed Transaction will not give rise to coordinated and non-coordinated effects for the supply of metros in Singapore.

Public Consultation

9. CCS is inviting public feedback in relation to the Proposed Transaction.

10. More information on the public consultation can be accessed and downloaded from the CCS website at www.ccs.gov.sg under the section “Public Register and Consultation”. The closing date for submissions is on or before 27 January 2015. If the submission/correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

About The Competition Commission of Singapore (CCS)

CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.

For more information, please visit www.ccs.gov.sg.

For media clarifications, please contact:

Ms. Grace Suen
Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216