(i) the names of the merger parties;
· SATS Airport Services Pte. Ltd. (“SAS”)
· SATS-Creuers Cruise Services Pte. Ltd. (“SCCS”)
· Singapore Cruise Centre Pte. Ltd. (“SCCPL”).
(ii) a description of the transaction;
This sole notification is made by SAS, on behalf of SAS and SCCS, in relation to the acquisition by SAS and SCCS of 100 per cent. of the issued share capital of SCCPL.
(iii) a description of the business activities of the merger parties worldwide and in Singapore;
The principal activity of SAS worldwide is to provide airport ground handling services to air transport operators. SAS, as the controlling shareholder of SCCS, also manages and operates the international cruise terminal at MBCCS in Singapore. SAS’ other activities are non-marine-related.
The principal activity of SCCPL worldwide and in Singapore is to manage and operate the cruise and ferry terminals at HarbourFront Centre, Tanah Merah and Pasir Panjang. Apart from cruise and ferry terminal operations and management, SCCPL also offers consultation services pertaining to management, technical, and business services in the field of cruise and ferry terminal operations and related tourism development.
(iv) a description of the overlapping goods or services, including brand names;
The Parties overlap in the provision of international cruise terminal operating services.
The Parties also overlap, to a limited extent, in the provision of other non-marine-related activities, which are not the primary activities affected by the Acquisition.
(v) the applicant’s views on:
a. definition of the relevant market(s);
b. the way in which competition functions in this market;
c. barriers to entry and countervailing buyer power; and
d. the competitive effects of the merger (non-coordinated, coordinated and/or vertical effects, as relevant).
SAS submits that the relevant product market should be defined as the market for the provision of international cruise terminal operating services.
SAS submits that the geographic scope of competitive constraints on SAS and SCCPL is:
(a) global, if considered in the context of competing international cruise terminal service providers which can offer international cruise terminal operating services at the cruise terminals in Singapore; and
(b) broadly Asia, both intra-region (i.e. within Southeast Asia), and inter-region (i.e. between Southeast Asia and North Asia as alternative cruise networks) if considered in the context of competing international cruise terminals which can offer international cruise terminal operating services to cruise operators.
SAS submits that the Acquisition will not result in a substantial lessening of competition in view of factors, including the following:
Non-coordinated effects
(a) the intense competition from cruise terminals and destination countries within the region;
(b) the strong countervailing buyer power of the cruise terminal owners and cruise operators;
(c) price and service regulation by governmental authorities and the cruise terminal owners on services provided at the cruise terminals; and
(d) the threat of new entry at any time by potential competitors both within and outside of Singapore; and
Coordinated effects
(e) the multitude of competing service providers globally, and cruise terminals in the region, will be able to disrupt any coordinated pricing or service standards;
(f) the low switching costs for cruise terminal owners in Singapore to switch to appointing other terminal operators and for cruise operators to switch to other regional cruise terminals;
(g) the low barriers to entry for potential cruise terminal operators with translatable experience and expertise in the same or parallel industries globally to provide such services to the terminal owners in Singapore; and
(h) the strict price and service level regulations imposed by governmental authorities and the cruise terminal owners.
|