20 June 2012
- The Competition Commission of Singapore (CCS) has published its revised Guidelines on Merger Procedures 2012 (the Guidelines), which will come into effect on 1 July 2012.
- The three key benefits for businesses brought about by the revision are:
- Introduction of a new service where CCS offers confidential advice to merger parties. Businesses that wish to keep their mergers confidential for the time being, but yet wish to get an indication from CCS on whether or not their mergers would infringe the Competition Act may now approach CCS for confidential advice.
- Introduction of new turnover guidelines that give greater certainty to SMEs. The new guidelines make clear that CCS is unlikely to investigate a merger situation that involves only small businesses. For greater clarity, this is set as turnover in Singapore in the financial year preceding the transaction of each of the parties being below S$5 million, and a combined worldwide turnover in the financial year preceding the transaction of all of the parties being below S$50 million. It is important for merger parties to conduct their own self-assessment to assess if their merger is likely to result in a substantial lessening of competition in their market. If in doubt, they should, as early as possible, seek legal advice or make a merger filing with CCS.
- Clearer instructions on what information is needed in making a merger filing to CCS. The application Form M1 for merger filing has been revised for greater clarity and comprehensiveness to make it more efficient from a business perspective.
- Under the Competition Act, mergers that have resulted, or may be expected to result, in a substantial lessening of competition are prohibited. CCS monitors mergers and acquisitions and may launch an investigation if there are mergers that could potentially raise competition concerns. If CCS finds that a merger has infringed the Competition Act, it could instruct the businesses to stop or reverse the merger, or to remedy, mitigate or prevent any adverse anti-competitive effects. In order for a merger transaction to proceed smoothly, businesses should seek legal advice early to make sure their transaction complies with the Competition Act.
- The revised Guidelines have incorporated suggestions and feedback from the business community that were received during the public consultation exercise that CCS held from 20 February 2012 to 20 March 2012. Further information and full details of the revised Guidelines are available on the CCS corporate website www.ccs.gov.sg
(full URL: http://www.ccs.gov.sg/content/ccs/en/Anti-Competitive-Behaviour/mergers/where_can_i_findmoreinformation.html).
For media clarifications, please contact:
Michael Low
Senior Assistant Director
Strategic Planning
Competition Commission of Singapore
Email: michael_low@ccs.gov.sg
DID: 6325 8304