CCS flags competition concerns over SUTL-Keppel Bay marina deal

A Phase 1 review found the parties are likely close competitors.

The Competition and Consumer Commission of Singapore (CCS) has raised competition concerns following its Phase 1 review of a proposed transaction involving SUTL Enterprise Ltd, its subsidiary One15 Marina KB Pte. Ltd., and Keppel Bay Pte Ltd.

The deal involves SUTL, through One15, acquiring the property and assets of Marina at Keppel Bay from Keppel Bay, with plans to take over operations of the marina.

The group has agreed to acquire the property for $40m with completion expected in the second half of the year, according to a separate company announcement.

The regulator said the transaction could enhance the combined operator’s ability to raise prices or reduce service quality at the two marinas.

It noted that the companies are likely close competitors, given their marinas’ proximity and similar market positioning.

Post-merger, the combined entity would also hold a significant share of the marina berthing market in Singapore.

“Other marinas may not be strong substitutes and therefore may not exert sufficient competitive constraint,” CCS said.

The companies may offer commitments to address the concerns. If none are proposed, CCS will proceed to a more detailed Phase 2 review upon receiving the necessary documents.