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CCCS calls for feedback on proposed merger of 2 Korean shipbuilders
SINGAPORE'S competition watchdog is taking a deeper scrutiny of the potential merger of two Korean shipbuilders and is now seeking public feedback before it draws a conclusion.
The Competition and Consumer Commission of Singapore (CCCS) said it was unable to conclude that a proposed merger of Korea Shipbuilding & Offshore Engineering (KSOE) and Daewoo Shipbuilding & Marine Engineering (DSME) would not raise competition concerns, based on information from KSOE and third-party feedback.
The watchdog said it is now conducting an "in-depth review" of the effect of the proposed merger, following a preliminary review where it had raised competition concerns.
It is also calling for feedback until Feb 19, which can be submitted through its website.
KSOE had applied to CCCS on Sep 12 last year for a decision on whether the proposed merger would infringe Section 54 of the Competition Act, CCCS said.
The law prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.
CCCS noted that both shipbuilders overlap in the supply of commercial vessels, including oil tankers, containerships, liquefied natural gas carriers and liquefied petroleum gas carriers. Both operate in Singapore as foreign companies registered here.
In November, the watchdog expressed concerns, following the preliminary review, that the proposed merger would remove competition to the detriment of customers in Singapore. It added that barriers to entry and expansion may be high, and alternative suppliers may not be sufficiently strong competitors to the merged entity.
It is now commencing an in-depth review of the effect of the proposed merger, CCCS said, following new documents filed by KSOE on Jan 23.
More information on the public consultation can be found on CCCS's website at www.cccs.gov.sg.