CCS Consults on the Proposed Joint Venture between Nippon Yusen Kabushiki Kaisha Ltd. and Mitsui O.S.K. Lines Ltd. and Kawasaki Kisen Kaisha Ltd.

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1.    The Competition Commission of Singapore (“CCS”) is conducting a public consultation from 6 February 2017 to 20 February 2017 to invite feedback on the proposed joint venture between Nippon Yusen Kabushiki Kaisha  Ltd. (“NYK”) and Mitsui O.S.K. Lines Ltd. (“MOL”) and Kawasaki Kisen Kaisha Ltd (“KL”) (collectively, the “Parties”). KL, MOL and NYK intend to integrate the container shipping businesses (including worldwide terminal operating businesses excluding Japan) (the “Transaction”).

The Transaction

2.    The Parties are diversified global logistics enterprises and are involved in maritime transportation businesses. Their business activities in Singapore include containerships, bulk shipping and logistics services. They have jointly applied for a decision by CCS on whether the Transaction would infringe the prohibition in the Competition Act against anti-competitive mergers.[1]

3.    According to the Parties:

a.     The only overlapping service of the Parties which will be contributed to the proposed joint venture, and which would affect Singapore, is container liner shipping services.

b.    The relevant market is the market for container liner shipping services for the overlapping liner shipping trade routes of NYK, MOL and KL between broadly defined geographic regions involving East Asia.

c.    Anti-competitive effects will not arise as there are numerous competitors in the container liner shipping business; competitors compete on a range of factors which end-customers take into consideration in their choice of container liner shipping providers; and barriers to entry and expansion are not prohibitive.

Public Consultation

4.    More information on the public consultation can be accessed and downloaded from the CCS website  under the section “Public Register and Consultation”. The closing date for submissions is on 20 February 2017. If the submission or correspondence contains confidential information, please also provide CCS with a non-confidential version of the submission or correspondence.

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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. Grace Suen
Assistant Director
International and Strategic Planning Division
Competition Commission of Singapore
Email: grace_suen@ccs.gov.sg
DID: 6325 8216/ 9835 8601

Ms. Loy Pwee Inn
Senior Assistant Director
International and Strategic Planning Division
Competition Commission of Singapore
Email: loy_pwee_inn@ccs.gov.sg
DID: 6325 8313

[1] Section 54 of the Competition Act prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition in Singapore.