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Tullett Prebon Acquires ICAP’s
Wholesale Broking Business
Heineken Acquires GAPL in
Beer Merger
CCS examined the proposed
acquisition by Tullett Prebon PLC
(“TP”) of ICAP’s global wholesale
broking business. In Singapore,
TP offers wholesale intermediary
services in relation to Treasury
Products, Interest Rate Derivatives
and Fixed Income. TP also offers
broking services in relation to
Energy & Commodities. In addition
to wholesale intermediary/broking
services, TP is also engaged in the
data sales and risk management
services businesses in Singapore.
ICAP offers wholesale intermediary
services in relation to Treasury
Products, Interest Rate Derivatives
and Energy & Commodities. Fusion,
an ICAP proprietary platform that
provides an all-day Indication
of Interest screen in support of
the hybrid broking business, also
operates in Singapore. ICAP also
provides data sales in Singapore.
CCS determined that there will be
a number of areas of overlap as a
result of the acquisition.
CONCLUSION
After reviewing the companies’ submissions and feedback from customers
and competitors following a public consultation, CCS concluded that
the proposed acquisition is unlikely to lead to a substantial lessening of
competition for the provision of wholesale hybrid broking services in Singapore
and the global provision of real-time and periodic pricing data into Singapore.
CCS cleared the acquisition by Heineken International B.V. (“HIBV”) of
the entire issued and outstanding ordinary share capital of GAPL Pte. Ltd.
(“GAPL”) which HIBV (through its subsidiary, Heineken Asia Pacific Pte.
Ltd. (“HAP”)) did not already hold. CCS has assessed that the acquisition
has not substantially lessened competition in the supply of beers in
Singapore, which includes ales, lager and stouts.
FINANCE
FOOD & BEVERAGE
Countervailing buyer
power or the ability
of buyers to extract
price concessions
from the wholesale
intermediaries is relatively strong.
Hence, the acquisition has not
changed the relative bargaining
power between the Heineken Group
and its customers that would
increase the ability of the former to
raise prices or impose exclusivities
that might harm competition.
FINDINGS
FINDINGS
CASE TEAM MEMBERS
Candice Lee, Nicholas Sim, Tang Ee Mei, Timothy Chew
CASE TEAM MEMBERS
Neha Georgie, Joanne Yong, James Yoon, Leow Rui Ping,
Herbert Fung
Post-acquisition, there
will still be sufficient
competition from
other wholesale
intermediaries and
trading channels in relation to the
provision of broking services for each
of the overlapping products.
The companies’
strength in relation
to the provision of
pricing data is linked
to their strength in the
underlying hybrid services provided. As
such, as with wholesale hybrid broking
services, competitors are able to
expand and countervailing buyer power
is relatively strong with respect to the
provision of pricing data by the parties.
Other wholesale
intermediaries are
able to expand their
broking services
due to pre-existing
relationships with customers, which
enables customers to switch without
substantial switching costs.
The distribution of ABC Extra Stout
and Guinness Stout in Singapore was,
before and after the acquisition, still
undertaken by Asia Pacific Breweries
Singapore, which is a wholly-owned
subsidiary within the Heineken Group.
APPROVED
APPROVED
ANNUAL REPORT 2016
27