Competition regulator invites feedback on proposed Sembmarine, Keppel O&M merger
Raphael Lim
THE Competition and Consumer Commission of Singapore (CCCS) is seeking public feedback on the proposed merger of Sembcorp Marine (Sembmarine) and Keppel Offshore & Marine (Keppel O&M).
In a statement on Tuesday (Aug 2), CCCS said it is assessing whether the proposed combination of the 2 companies would infringe Section 54 of the Competition Act, which prohibits mergers that have resulted or may be expected to result in a substantial lessening of competition within any market in Singapore.
CCCS said it accepted a joint notification on Jul 29 from both parties for a decision on the proposed move.
Both Sembmarine and Keppel O&M provide shipbuilding, conversion and ship repair services at their Singapore shipyards, with a specific focus on vessels and structures in the offshore, marine and energy industries.
CCCS noted that the parties have said the proposed combination will not result in a substantial lessening of competition due to the competitive tendering processes for the purchase and repairs of commercial vessels, strong competition from existing global players or new entrants, and presence of large and sophisticated buyers with considerable buyer power.
Keppel Corp — which wholly-owns Keppel O&M — and Sembmarine announced details of the proposed merger in April this year. It involves the establishment of a new holding company, which will combine the businesses of Keppel O&M and Sembmarine via separate schemes of arrangement.
Following the proposed move, Temasek Holdings will be the single largest shareholder of the combined entity with a shareholding of 33.5 per cent. The combined entity will also be listed on the Singapore Exchange mainboard.
The public can submit feedback to CCCS on the proposed combination at www.cccs.gov.sg. The closing date for submissions is Aug 15 at 5 pm.
Sembmarine shares rose 1.8 per cent on Tuesday to close at S$0.112, while Keppel Corp shares closed unchanged at S$6.96, before the announcement.
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