21 / 74
Samwoh Premix Acquires
Competitor Ley Choon’s
Manufacturing Site and Plant
Semiconductor Industry Player ASML
Acquires Hermes Microvision
CCS examined the proposed acquisition by Samwoh Premix Pte.
Ltd. (“SWPPL”) of the property together with the building and
asphalt premix manufacturing plant from competitor Ley Choon
Constructions and Engineering Pte. Ltd. (“LCCE”). Both companies
manufacture asphalt premix, which is the main product used for
surfacing roads and pavements.
CONCLUSION
CCS concluded that the acquisition is unlikely to substantially lessen
competition in the market for production of asphalt premix in Singapore.
CCS issued its clearance decision on 24 August 2016.
CONCLUSION
After reviewing the companies’ submissions and the feedback sought from
customers and competitors, CCS concluded that the proposed acquisition
is unlikely to substantially lessen competition in the relevant markets, and
therefore will not infringe section 54 of the Competition Act. The clearance
decision was issued on 10 August 2016.
CCS reviewed and approved the proposed acquisition by ASML Holding
N.V. (“ASML”) of Hermes Microvision, Inc. (“HMI”). In Singapore, ASML’s
activities comprise the sales of lithography equipment, overlay metrology
equipment and process control software; the company also provides
maintenance and customer services for its products. HMI is involved in
the manufacturing of e-beam inspection tools for chip manufacturers
worldwide; it has no offices or facilities in Singapore and does not
undertake manufacturing or Research and Development (“R&D”)
in Singapore, but supplies e-beam inspection tools to customers in
Singapore. The rationale behind the proposed acquisition is to expand
the range of products to better serve both companies’ customers and
offer them more advanced tools. One such example is that HMI’s e-beam
technology could be used to improve ASML’s products.
MANUFACTURING
MANUFACTURING
None of the feedback sourced from customers
and competitors raised competition concerns
regarding the proposed acquisition.
Existing competitors
supplying optical
inspection tools and
developing e-beam
inspection tools
will continue to
exert a competitive
constraint on the
merged entity.
FINDINGS
FINDINGS
CASE TEAM MEMBERS
Edmund Lam, Eileen Lee, Lynette Chua, Herbert Fung
CASE TEAM MEMBERS
Leow Rui Ping, Poh Lip Hang, Joanne Yong, Winnie Ching
The proposed acquisition only involves the transfer of
asphalt premix production capacity, not customer
purchases or employees. LCCE will continue to be an
independent competitor to SWPPL.
The parties are not
direct competitors in
the relevant markets
as their products
do not overlap
globally, including in
Singapore.
Asphalt premix is a homogenous commodity that
can be supplied by the other competitors, with
low or marginal switching costs for customers.
There is excess capacity in the market for
the production of asphalt premix. SWPPL’s
competitors have sufficient capacity to meet the
demand of SWPPL’s customers if they decide to
switch their demand to other manufacturers.
Feedback from
customers and
competitors did not
indicate that the
parties intend to take
advantage of their
expanded range of
products to substantially
lessen competition in
the relevant markets.
APPROVED
APPROVED
ANNUAL REPORT 2016
21