The Competition Commission of Singapore is reportedly conducting a public consultation from December 2 to 16, 2016 to invite feedback on the acquisition by Nissan Motor Co Ltd. (Nissan) of shares in Mitsubishi Motors Corporation (MMC), (the Transaction).
Nissan, which is an affiliate of Renault SA (Renault), has acquired a 34 per cent shareholding in MMC such that MMC will become an affiliate of Nissan.
Nissan and MMC have jointly applied for a decision by CCS on whether the Transaction has infringed the prohibition in the Competition Act against anti-competitive mergers.
CCS understands that Nissan, MMC and Renault (the Parties) are each active worldwide in the development, manufacture, marketing, and sale of passenger vehicles, commercial vehicles, components, and spare parts, and vehicle financing (for their own vehicles).
According to Nissan and Mitsubishi Motors Corporation, there is significant competition for the supply of passenger vehicles and light commercial vehicles, and this competition remains post-Transaction. And it is very difficult for competitors to coordinate their competitive behaviour post transaction as competition in passenger and light commercial vehicles is fierce and driven by numerous price and non-price factors as well as end-customers' purchase considerations.
They added that apart from supplying passenger vehicles and light commercial vehicles in Singapore and Renault, Nissan and Mitsubishi Motors otherwise do not overlap or potentially compete in Singapore in other goods or services.
The closing date for submissions is on or before December 16, 2016.