CCS Consults on the Proposed Acquisition by Samwoh Premix of an Asphalt Premix Manufacturing Plant from Ley Choon Constructions and Engineering

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1. The Competition Commission of Singapore (“CCS”) is inviting interested parties to provide feedback on the anticipated acquisition by Samwoh Premix Pte. Ltd. (“SWPPL”) of property and assets from Ley Choon Constructions and Engineering Pte. Ltd. (“LCCE”) (the “Proposed Transaction”). The public consultation will be from 20 July to 3 August 2016.
   
   The Proposed Acquisition
   

2. SWPPL will acquire the following property and assets from LCCE:
   
   a.    the property located at Lot 3465C of Mukim 11 (also known as Private Lot A1276500) together with the building erected at 55 Kranji Crescent, Singapore 728662 (the “Property”); and
   
   b.    the asphalt premix manufacturing plant together with all plant and equipment in connection therewith (the “Plant and Equipment”) situated at the Property, as set out in Schedule 1 of the Agreement Relating to the Sale and Purchase of 55 Kranji Crescent Singapore 728662 entered into between LCCE and SWPPL on 19 May 2016 (the “SPA”),
   
   (collectively, the “Disposal Assets”). 

3. The notification of decision is made solely by Samwoh Corporation Pte. Ltd. (“Samwoh”) and CCS understands that the Samwoh group of companies is involved in the following areas of business in Singapore:
   
   (i)    building materials consisting of supply and lay of asphalt premix, ready-mixed concrete and quarrying and supply of building materials;
   
   (ii)   construction consisting of civil engineering and infrastructure;
   
   (iii)  special products and services explosives and controlled blasting systems, precast concrete components, specialised pavement products and logistics and machinery rentals;
   
   (iv)  recycling of construction waste; and
   
   (v)  research and development (“R&D”) consisting of R&D centre and consultancy services.
   

4. CCS understands that the Ley Choon group of companies is involved in the following areas of business in Singapore:
   
   (i)   pipes and roads segment, consisting of underground utilities infrastructure construction and maintenance, sewer pipeline rehabilitation, and road and airfield construction and maintenance; and
   
   (ii)  constructions materials segment, comprising of asphalt premix production and construction waste recycling.

5. According to Samwoh,
   
   a.    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;
   
   b.    SWPPL (through the Samwoh group of companies) and the Disposal Assets overlap only in the production of asphalt premix in Singapore;
   
   c.    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;
   
   d.    Non-coordinated effects will also not arise in the production of asphalt premix in Singapore as a result of the Proposed Transaction; and
   
   e.    The characteristics of the relevant market preclude the possibility of anti-competitive coordinated effects
   
   Public Consultation

6. More information on the public consultation can be accessed and downloaded from the CCS website  under the section “Public Register and Consultation”. The closing date for submissions is on or before 3 August 2016. If the submission or correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.
    

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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
International and Strategic Planning Division
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216/ 9835 8601

Ms. Loy Pwee Inn
Senior Assistant Director
International and Strategic Planning Division
Competition Commission of Singapore
Email: loy_pwee_inn@ccs.gov.sg
DID: 6325 8313