Oki Electric acquires aviation equipment business of Yokogawa Electric, subsidiaries

The acquisition would not lead to a substantial lessening of competition in the market.

Singapore's Competition and Consumer Commission (CCCS) cleared a proposal from Oki Electric to acquire the aviation equipment business of Yokogawa Electric Corporation and its subsidiaries, Yokogawa Manufacturing Corporation and Yokogawa Electric Asia.

The acquisition includes Yokogawa Electric Asia's commercial aviation business developing flat panel displays for commercial aircraft cockpit systems and other equipment.

In its assessment, CCCS found the proposed transaction would unlikely lead to a substantial lessening of competition in the relevant markets due to Oki Electric does not have the ability and incentive to foreclose, nor currently supply, competitors in the aviation equipment business in the downstream industry because it is not a major upstream supplier.

CCCS added that despite Oki Electric may have significant market shares in the downstream industry after the completed acquisition, its demand for multilayer rigid circuit boards would unlikely be sizeable enough for the company to be a key customer of its suppliers.

"Coordination between competitors in either the upstream or downstream markets is unlikely to arise as the number of existing players in each of these markets are unlikely to be reduced, such that coordination amongst competitors become easier due to the proposed transaction," CCCS concluded.