CCS Consults On Proposed Acquisition By Ridgeback Acquisition LLC Of The Pet Care Business Of The Procter & Gamble Company In Certain Countries (Including Singapore)

(View Media Release in PDF)

1.    The Competition Commission of Singapore (“CCS”) is seeking feedback on the proposed acquisition by Ridgeback Acquisition LLC (“Ridgeback”), a wholly owned subsidiary of Mars, Inc, of The Proctor & Gamble Company’s (“P&G”) (collectively “the Parties”) pet care business, in certain countries[1], including Singapore.

2.    CCS received a notification for decision on 15 September 2014 from the Parties in relation to the proposed acquisition by Ridgeback, of P&G’s pet care business – which consists of P&G's business of sourcing, manufacturing, producing, marketing, selling, distributing and developing pet-nutrition products in major markets, including dry foods, wet foods and treats, for dogs and cats – in certain countries, including Singapore (“the Transaction”).

3.    Ridgeback is a holding company with no operational activities itself and was created for the purposes of the Transaction. Ridgeback is a wholly owned subsidiary of Mars, Inc, which is a global privately held company headquartered in McLean, Virginia, USA. Mars, Inc. operates in more than 74 countries and has six business segments focused on consumer products, namely: (a) pet care, (b) chocolate, (c) mints and candies, (d) food, (e) drinks and (f) health and life sciences.

4.    Mars, Inc.’s Petcare is headquartered in Brussels, Belgium and includes leading brands for dogs and cats such as Pedigree, Whiskas, Royal Canin, Cesar, Sheba, Greenies, and Nutro.

5.    P&G is a global, publicly traded company established in 1837 and headquartered in Cincinnati, Ohio, USA. P&G operates in approximately 80 countries and has four Global Business Units focused on consumer products, namely: (a) Global Fabric and Home Care, (b) Global Beauty, (c) Global Baby, Feminine and Family Care and (d) Global Health and Grooming.

6.    P&G’s pet care business is part of P&G’s Global Health and Grooming segment, and includes brands such as Iams, Eukanuba and Natura.

7.    The notification is made under section 57 of the Competition Act (Cap. 50B), in relation to section 54 of the Competition Act, which prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

8.    The Parties submit that they overlap in the manufacture and supply of the following:

a.    dry dog food;
b.    dry cat food; and
c.    dog treats.

9.    The Parties submit that the Transaction, when carried into effect, will not result in a substantial lessening of competition in any market in Singapore because of, inter alia, a number of strong international and local competitors present in Singapore, significant buyer power, limited number overlapping products between the Parties, and low barriers of entry.

Public Feedback

10.  CCS is inviting all feedback and views in relation to the Transaction.

11.  The consultation documents can be accessed and downloaded from the CCS website at www.ccs.gov.sg under the section “Public Register and Consultation”. The closing date for submissions is on or before 1 October 2014. If the submission/correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

About The Competition Commission of Singapore (CCS)

CCS is a statutory board established under the Competition Act (Chapter 50B) on 1 January 2005 to administer and enforce the Act. It comes under the purview of the Ministry of Trade and Industry. The Act empowers CCS to investigate alleged anti-competitive activities, determine if such activities infringe the Act and impose suitable remedies, directions and financial penalties.

For more information, please visit www.ccs.gov.sg.

For media clarifications, please contact:

Ms. Lim Le-Anne
Senior Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: lim_le-anne@ccs.gov.sg
DID: 6325 8304 / 9478 8824

Ms. Teo Hwee Leng
Assistant Director
Strategic Planning Division
Competition Commission of Singapore
Email: teo_hwee_leng@ccs.gov.sg
DID: 6325 8126

[1] The countries are Ukraine, Republic of South Africa and a number of selected countries in Middle East, Africa and Asia, including Singapore.