Notifying Party: | Hedychium Group Limited and Hedychium Limited |
Summary of Transaction: | the names of the merger parties;
The merger parties in this transaction are affiliates of BPEA Private Equity Fund VIII, namely Hedychium Group Limited (“Parent”) and Hedychium Limited (“Buyer”) (collectively, the “Applicant”), and PropertyGuru Group Limited (“PropertyGuru”).
a description of the transaction;
The notification relates to the proposed acquisition by the Applicant of PropertyGuru by way of merger.
a description of the business activities of the merger parties worldwide and in Singapore;
BPEA Private Equity Fund VIII is an investment fund advised by entities affiliated with EQT AB (together with the other EQT funds, “EQT”). EQT is a purpose-driven global investment organisation focused on active ownership strategies. The portfolio companies of EQT are active in a variety of industries across various countries globally.
PropertyGuru is a property technology platform company based in Southeast Asia, which primarily provides online property marketplace services and digital sales and marketing services, as well as mortgage brokerage services, home services platform services and real estate data and software services. a description of the overlapping goods or services, including brand names;
The Applicant and PropertyGuru do not overlap in the supply of any goods or services in Singapore. a description of substitute goods or services from demand-side and supply-side considerations;
On the demand-side, substitutes for the digital real estate advertising services provided by PropertyGuru include digital real estate advertising services provided by other competing platforms, traditional real estate advertising (e.g. door-to-door, newspapers, magazines, flyers and TV ads), as well as real estate agencies’ proprietary portals and social media.
On the supply-side, substitutes for the digital real estate advertising services provided by PropertyGuru would be digital real estate advertising services provided by other competing platforms. Apart from such close substitutes, other substitutes include, for example, providers of traditional real estate advertising (e.g. door-to-door, newspapers, magazines, flyers and TV ads), as well as real estate agencies’ proprietary portals and social media. the applicant’s views on:
definition of the relevant market(s);
The relevant market should be defined as the market for digital real estate advertising services in Singapore. the way in which competition functions in this market;
Competitive dynamics characterise the market for digital real estate advertising services in Singapore. The key drivers of competition in the market for digital real estate advertising services are product innovation (i.e. features available to property agents and property developers, as well as features that would draw property seekers to PropertyGuru) and price (i.e. cost of listing properties on the platforms). barriers to entry and countervailing buyer power; and
The barriers to entry in the market for digital real estate advertising services are generally low, as a potential competitor can enter the market rapidly as long as it has the technology and resources. In addition, there are generally no factors such as planning restraints, technology, R&D requirements, regulatory barriers, import restrictions and IP rights that would constitute a barrier to entry.
Customers of digital real estate advertising services in Singapore (i.e. property agents and property developers) hold significant countervailing buyer power vis-à-vis digital real estate advertising platforms, for the following reasons:
Property agents: Property agents have a wide range of advertising options, including offline (e.g. advertising door-to-door, on billboards or via traditional media) and online via social media, personal websites and other competing platforms, making it easy for property agents to switch between different alternatives.
Property developers: Property developers have bargaining power, given that property developers have in-house marketing teams, who are able to decide on the marketing channels they would like to spend their marketing budgets on. There are various marketing channels available to developers, such as traditional media (newspapers and TV ads), proprietary portals, social media, digital marketing campaigns, search engine advertising, etc.
the competitive effects of the merger (non-coordinated, coordinated and/or vertical effects, as relevant).
As there are no horizontal overlaps or vertical relationships between the Applicant and PropertyGuru, there will not be any coordinated, non-coordinated and/or vertical effects arising from the merger.
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Decision: | 6 December 2024 Following its assessment, CCCS has concluded that the Proposed Transaction, if carried into effect, will not infringe the section 54 prohibition of the Competition Act 2004. Read the Media Release. Read the Grounds of Decision. |
