Proposed Merger of Airfield Lighting Suppliers: CCS Grants Approval after Commitments Accepted
CCS granted approval of ADB ABVA's proposed acquisition of Safegate International AB from Fairford Holdings Private AB after accepting commitments to address competition concerns.
The merger parties account for a significant market share of more than 80% in the supply of airfield lighting ("AFL") systems in Singapore, and they may be each other's closest competitior. If the merger were to proceed, other AFL suppliers would face difficulties entering the market in the short to medium term due to customers' extensive testing requirements. The proposed merger may therefore significantly reduce the level of competition in the affected market in the short to medium term, and may lead to price increases and deterioration in quality and/or technical support.
After evaluating feedback provided by industry players during the public consultation exercise held in Dec 2015 on the proposed commitments, CCS considers these commitments to be sufficient to address the competition concerns it had identified.
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