Regulator says transaction will not substantially lessen competition within Singapore
THE Competition and Consumer Commission of Singapore (CCCS) has cleared Hanwha Ocean SG Holding’s proposed acquisition of Dyna-Mac.
In a press release on Friday (Nov 15), the competition regulator said that it has assessed that the transaction will not substantially lessen competition within Singapore.
Hanwha, part of South Korea’s Hanwha Ocean, had made an offer of S$0.60 per share to Dyna-Mac’s shareholders on Sep 11. The company made a final offer of S$0.67 per share on Oct 14, which a substantial and founding shareholder accepted. The offer turned unconditional on Nov 5.
On Oct 3, CCCS had begun reviewing Hanwha’s application for a decision on whether the proposed transaction would lessen competition. A public consultation sought feedback from competitors and stakeholders, with most respondents not raising any concerns.
The regulator focused on whether competition would be affected in the downstream markets for offshore plants, given the potential supplier-customer relationship between Dyna-Mac and Hanwha. CCCS concluded that there would not be a lessening of competition in the supply of offshore plants because:
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Dyna-Mac’s market share in the global supply chain is unlikely to be high;
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Customers have sufficient choice of suppliers for offshore plants on a global basis;
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Dyna-Mac’s offshore plants represent only a small portion of the global supply.
Shares of Dyna-Mac closed flat at S$0.665 on Friday.
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