CCCS Clears Proposed Acquisition by Japan Pulp and Paper Company Limited of Spicers Paper (Singapore) Pte Ltd
27 November 2018
(View Media Release in PDF)
1. The Competition and Consumer Commission of Singapore (“CCCS”) has today cleared the proposed acquisition by Japan Pulp and Paper Company Limited (“JPP”) of Spicers Paper (Singapore) Pte Ltd (“Spicers Singapore”) (the “Proposed Transaction”). Following its review, CCCS has concluded that the Proposed Transaction, if carried into effect, will not infringe the section 54 prohibition of the Competition Act (Cap. 50B) (the “Act”).
2. On 16 October 2018, JPP filed a notification with CCCS for a decision as to whether the Proposed Transaction will infringe the prohibition in section 54 of the Act, if carried into effect.
3. JPP and Spicers Singapore are both paper merchants. They overlap in the supply of coated paper, uncoated woodfree paper, copy paper, coated board, carbonless paper and synthetic paper. Paper products in Singapore may be supplied to wholesale customers (e.g. printing companies) by paper merchants that procure paper products from paper mills, or by paper mills themselves through local agents in Singapore.
4. CCCS conducted its assessment of the Proposed Transaction based on the following relevant markets: (a) wholesale supply of printing and communications paper in Singapore; (b) wholesale supply of paperboard products in Singapore; and (c) wholesale supply of carbonless paper in Singapore.
5. After consulting stakeholders and evaluating all relevant information, CCCS has concluded that the Proposed Transaction, if carried into effect, will not lead to a substantial lessening of competition within the relevant markets in Singapore.
6. In particular, CCCS has found that:
(a) Barriers to entry and expansion in the relevant markets are likely not high or insurmountable despite market conditions which appear to be volatile with shrinking demand, as well as a trend of market consolidation and market exits; and
(b) There are several alternative paper suppliers that wholesale customers can purchase from.
7. Further information on the application and CCCS’s Grounds of Decision will be made available in due course on CCCS’s Public Register at our website.
 Section 54 of the Act prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.
 Printing and Communications Paper refers to paper products that are generally used for printing and communications purposes and includes products such as coated paper, uncoated woodfree paper, copy paper and synthetic paper.
 Paperboard products refer to coated board products in this case which are used for purposes such as packaging, graphic printing and printing of magazine covers or post cards.
 Carbonless paper is a pressure sensitive paper commonly used for making duplicate copies and ensuring that the condition of the originals is preserved. Uses include invoices, receipts and order forms.