Public opinion sought on Sembcorp Marine and Keppel O&M merger
The competition authority is assessing whether the merger infringes the Competition Act 2004.
The Competition and Consumer Commission of Singapore (CCCS) has sought public feedback to help them assess whether the merger of Sembcorp Marine Limited (SCM) and Keppel Offshore & Marine Limited (KOM) will lessen competition within the shipbuilding market in Singapore.
Under section 54 of the Competition Act 2004, mergers that have resulted or may be expected to result in a substantial lessening of competition within any market in Singapore are prohibited.
KOM and SCM, for their part, said their merger will not result in a substantial lessening of competition within relevant markers in Singapore “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. “
The parties, however, also said that they “overlap in the supply of commercial vessels and the provision of ship repair services in Singapore.”
To further assess the merger, the public can send feedback to CCCS until 15 August, at 5 p.m.