CCS Consults on the Proposed Acquisition by Wilhelmsen Maritime Services AS of Drew Marine’s Technical Solutions, Fire, Safety and Rescue Businesses

(View Media Release in PDF)

1.    The Competition Commission of Singapore (“CCS”) is conducting a public consultation from 15 August to 29 August 2017 to invite feedback on the proposed acquisition by Wilhelmsen Maritime Services AS (“WMS”) of sole control over Drew Marine’s technical solutions, fire, safety and rescue businesses (“Drew Marine Technical Solutions” or “DMTS”) (the “Transaction”).^[1]

2.    WMS has applied for a decision by CCS on whether the Transaction would infringe the prohibition in the Competition Act against anticompetitive mergers.^[2]

The Transaction

3.    WMS is a global provider of standardized product brands and service solutions to the maritime industry, focusing on marine products, marine chemicals and gases, maritime logistics, ship agency and ship management services.

4.    DMTS supplies a range of chemicals (water treatment, fuel oil treatment and cleaning chemicals), gases (welding gases and refrigerants) and equipment (e.g. welding equipment and fire, safety and rescue equipment) to the maritime sector.  

5.    According to WMS:

a.    WMS and DMTS overlap in the supply of marine chemicals (cleaning chemicals, water treatment chemicals and fuel oil treatment chemicals), marine gases (wielding gases and refrigerants), and other consumables and equipment (e.g. welding equipment).

b.    The relevant product markets are the markets for (i) industrial and marine chemicals; (ii) industrial and marine gases; and (iii) other consumables and equipment; and the relevant geographic markets are at least Singapore-wide in scope.

c.    Anticompetitive effects will not arise in view of the intense competition in Singapore from a number of large, well-established competing international suppliers, as well as a large number of smaller regional/local players; low barriers to entry and expansion; pricing pressure exerted by customers given the ease of customer switching to competing suppliers; and the lack of focal points for coordination among competitors, given the number and type of product lines across which competition occurs.

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 29 August 2017. 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
Senior Assistant Director
Communications
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216/ 983 58601

^[1] Drew Marine refers to Drew Marine Group Coöperatief U.A. and Drew Marine Partners L.P. collectively.

^[2] Section 54 of the Competition Act (Chapter 50B) prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.