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www.ccs.gov.sg
International merger enforcement –
practical issues for the ASEAN region
Herbert Fung, Director (Business & Economics), CCS
MWG BOS 5, ICN Annual Conference, 29 April 2015
Singapore is a very externally oriented economy
1,000
800
600
2014 GDP
= S$390B
400
200
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(X-M)
+
G
+
I
+
C
+X
-M
S$732B
S$637B
Some of our top trade partners are Asian/ASEAN
Africa
Oceana
1%
4%
EU: 10%
US: 8%
America
12%
Europe
12%
Malaysia: 11%
Indonesia: 7%
ASEAN
26%
Rest of Asia
45%
2014 Total Trade = SGD 983 billion
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China, PR: 12%
Taiwan: 6%
Korea: 5%
Japan 5%
Mergers notified to CCS are mostly international
49 mergers have been notified to CCS
Overlap in
Singapore only
(8)
Notified in
Singapore only
but overlap
beyond
Notified
Singapore
Across
(16)
Asia
(2)
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Notified in
multiple
jurisdictions
globally
(23)
International mergers notified in Singapore tend
to be also notified in jurisdictions outside ASEAN
Jurisdiction
No. of cases
Jurisdiction
No. of cases
#1. China, P.R.
15
#8. Japan
8
#1. US
15
#9. Australia
7
#3. EU
13
#9. Israel
7
#4. Taiwan
11
#9. Russia
7
#5. Turkey
10
#9. South Africa
7
#6. Korea, South
9
#9. Ukraine
7
#6. Brazil
9
#14. Canada
5
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However, mergers notified only in Singapore
tend to overlap in markets within ASEAN
Jurisdiction
No. of cases
Jurisdiction
No. of cases
#1. Singapore
18
#5. Thailand
4
#2. Global market
6
#7. China, P.R.
3
#3. Indonesia
5
#8. Cambodia
2
#3. Malaysia
5
#8. Vietnam
2
#5. Philippines
4
#8. Hong Kong
2
e.g. JobsDB.com/JobStreet.com (job portals)
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ASEAN cooperation on mergers: our merger
regimes are not the same at the moment
Brunei, Cambodia, Laos, Myanmar: no enforcement of
competition law at present
Malaysia: no merger provision under competition law
Thailand: notification thresholds not yet prescribed
Philippines: no generic, centrally-enforced regime against
anticompetitive mergers
Vietnam: mandatory, pre-notification
Indonesia: mandatory, post-notification
Singapore: voluntary, pre-notification
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Global cooperation on mergers: asymmetric
influence between larger & smaller jurisdictions
Commitments accepted by larger jurisdictions may take
global effect – free riding or prescription for smaller
jurisdictions?
Thomson/Reuters (information services)
Manitowac/Enodis (food service equipments)
Local market conditions may not be the same between
different jurisdictions:
Holcim/Lafarge (cement)
Prudential/AIA (insurance)
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Local mergers are more likely to be problematic
Parkway/RadLink
SATS/Singapore Cruise Centre
Mount Kawi/Samwoh/Poly
Resources/Zhan Chang
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ASEAN Experts Group on Competition (AEGC)
Handbook on Competition Policy and LAW in
ASEAN for Business 2013
Chapter 2: Scope of Competition Law – anticompetitive mergers:
Generally covers mergers, acquisitions and joint ventures
Mergers are only prohibited when they lead to a “substantial
lessening of competition”
Mergers should be screened or approved by the Competition
Authority or other competent agency
A voluntary or mandatory notification system may be
established, with minimum thresholds
Failure to notify may lead to sanctions
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Conclusion
As a externally oriented economy, Singapore benefits from
international enforcement cooperation in mergers, given the
high proportion of cross-border notifications
Singapore welcomes more international cooperation, at both
case and policy levels, even though the influence of small
jurisdictions is sometimes limited in practice
As competition law and policy are developed further across
ASEAN member states, more ASEAN mergers are expected to
be notified, and closer ASEAN cooperation would be needed
Despite the importance of international cooperation, local
mergers are more likely to be problematic, and local market
conditions for an international merger may not be the same
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