CCCS Consults on the Proposed Acquisition by Bread Talk Group Limited of Food Junction Management Pte Ltd

11 September 2019

(View Media Release in PDF)

1)    The Competition and Consumer Commission of Singapore (“CCCS”) is inviting public feedback on the proposed acquisition by Bread Talk Group Limited through its subsidiary Topwin Investment Holding Pte Ltd (“Topwin”) of 100 per cent of the issued share capital in Food Junction Management Pte Ltd (“FJM”) (the “Proposed Transaction”) from 11 September 2019 to 24 September 2019.

2)    CCCS received a notification from Topwin on 4 September 2019 for a decision on whether the Proposed Transaction would infringe section 54 of the Competition Act (Cap. 50B), which prohibits mergers that have resulted, or may be expected to result, in a substantial lessening of competition within any market in Singapore.

The Parties

3)    Topwin is a wholly-owned subsidiary of BreadTalk Group Limited (“BT”) and its principal business activity is that of investment holding and provision of management services. Topwin’s subsidiaries are in the business of rental of stalls in the food court premises that they manage, and sale of food and beverage in food courts, in Cambodia, China, Hong Kong, Malaysia, Singapore, Taiwan and Thailand. As a group, BT’s primary business is in food and beverage retail, and operates and franchises close to 1,000 outlets in various formats in and outside of Singapore, including bakeries, restaurants, food courts and cafes. BT’s business of operating food courts and food court stalls in Singapore is solely operated by Food Republic Pte Ltd (“Food Republic”), except certain mini restaurants (located within the food court premises operated by Food Republic) which are operated by other subsidiaries of BT.

4)     FJM and its subsidiaries, namely Food Junction Singapore Pte Ltd (“FJS”) and T&W Food Junction Sdn Bhd (“TWFJ”) are principally in the business of operating food court premises and food court stalls in Singapore and Malaysia.

Public Consultation

5)    CCCS is inviting public feedback on the Proposed Transaction from 11 September 2019 to 24 September 2019, 12.00pm on the Parties’ submission as set out in paragraphs 5 to 8. In particular, CCCS would like to seek views on the following:

• Whether Food Junction and Food Republic are each other’s closest competitor.
• Whether switching to competitors of Food Junction and/or Food Republic is easy if the prices of the merged entity were to increase by 10% post-merger.
• What the impact of the Proposed Transaction on prices and service quality for the sale of drinks, fruits, snacks, desserts and hot meals in food court premises will be.
• What the impact of the Proposed Transaction on the rental of stalls to food vendors located within food court premises will be.

6)    More information on the public consultation can be accessed and downloaded from the CCCS website at www.cccs.gov.sg under the section “Public Register and Consultation”. If the submission/correspondence contains confidential information, please also provide CCCS with a non-confidential version of the submission or correspondence.