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Competition watchdog okays Ley Choon's sale of asphalt premix plant to Samwoh
SINGAPORE'S competition watchdog has given its nod to the proposed acquisition by Samwoh Corporation of the asphalt premix manufacturing plant, together with the building and the property, from its competitor Ley Choon Group Holdings, a mainboard-listed company.
Both companies manufacture asphalt premix, the main product used for surfacing roads and pavements. Both are involved in the transaction through their wholly-owned subsidiaries, Samwoh Premix Pte Ltd and Ley Choon Constructions and Engineering Pte Ltd, respectively.
The Competition Commission of Singapore (CCS) had sought feedback from customers and competitors, and found that asphalt premix is a homogenous commodity which can be supplied by other competitors, with low or marginal switching costs for customers.
There is also excess capacity in the market, meaning Samwoh's competitors would have sufficient capacity to meet the demand of customers should they want to switch to other manufacturers, it added.
Furthermore, the transaction involves only the transfer of asphalt premix production capacity, not customer purchases or employees.
CCS had informed both companies on Wednesday, it said.