18 October 2022

(View Media Release in PDF)

1. The Competition and Consumer Commission of Singapore (“CCCS”) has cleared the proposed acquisition by MOMQ Holding Company (“Momentive”) of CoorsTek KK.’s (“CoorsTek”) (collectively, the “Parties") crucibles business (the “Target Business”) (the “Proposed Transaction”).

2. 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 (the “Act”).

Background

3. CCCS accepted an application from the Parties on 26 August 2022 for a decision on whether the Proposed Transaction would infringe section 54 of the Act, which prohibits mergers which have resulted, or may be expected to result, in a substantial lessening of competition (“SLC”) within any market in Singapore.

4. Momentive is incorporated under the laws of Delaware, USA. It designs and manufactures ultra-high performance quartz and ceramic products. Momentive’s activities in Singapore includes the supply of quartz crucibles used in the production of 300mm silicon wafers. Momentive ships the crucibles to Singapore and does not have any registered entities in Singapore.

5. CoorsTek is incorporated under the laws of Japan. It develops and manufactures a variety of products made of inorganic materials such as quartz glass, graphite, silicon carbide, silicon parts and fine ceramics for use in the production of semiconductor devices. The Target Business is active in manufacturing quartz crucibles and supplies quartz crucibles used in the production of 300mm wafers. CoorsTek ships the crucibles to Singapore and does not have any registered entities in Singapore.

CCCS’s Assessment

6. CCCS conducted a public consultation from 30 August 2022 to 13 September 2022 and sought feedback from various stakeholders, including competitors and customers of Momentive and CoorsTek.

Relevant Market Affected by the Proposed Transaction

7. CCCS considered that the relevant market for its assessment of the Proposed Transaction is the global supply of quartz crucibles used in the production of 300mm silicon wafers.

Competition Assessment

8. CCCS found that the Proposed Transaction is unlikely to lead to non-coordinated^[1] and coordinated^[2] effects that would result in a SLC in the relevant market, for the following reasons:

a) The Parties supply differentiated products and are not close competitors in the relevant market, particularly in Singapore. Customers source from multiple suppliers, and are able to switch between suppliers.

b) Given limited transparency in the procurement process and varied procurement methods, collusion between competing suppliers is unlikely to arise as a result of the Proposed Transaction.

9. Further information on the notification and CCCS’s Grounds of Decision will be made available in due course on CCCS’s Public Register at www.cccs.gov.sg.