On 28 November 2014, the Competition Commission of Singapore (the “CCS”) announced the clearance of the proposed acquisition (the “Proposed Transaction”) of Tiger Airways Holdings Limited (“Tigerair Holdings”) by Singapore Airlines Limited (“SIA”) (SIA and Tigerair Holdings collectively referred to as the “Parties”).
Essentially, the CCS agreed that the Proposed Transaction would be less detrimental to competition in Singapore as compared to the scenario where Tigerair Holdings would have exited its operations in the absence of the Proposed Transaction which also would have caused disruptions to passengers and to the connectivity of the Singapore air hub. Following its assessment, the CCS concluded that the Proposed Transaction will not infringe the section 54 prohibition of the Competition Act (the “Act”). Section 54 of the Act prohibits mergers that may have resulted, or may be expected to result, in a substantial lessening of competition in Singapore. According to the CCS, the grounds of decision will be published in due course on its website www.ccs.gov.sg.
The Parties had notified the CCS on 17 October 2014 for a decision that the Proposed Transaction will not infringe section 54 of the Act. Shortly after receiving the Parties’ notification, the CCS conducted a public consultation between 24 October 2014 and 7 November 2014 to seek feedback on the Proposed Transaction. The CCS has issued its clearance decision within the 30 working days period for Phase 1 review.
Allen & Gledhill LLP was involved as Singapore antitrust counsel to the Parties in securing the clearance.
The following materials are available from the CCS website www.ccs.gov.sg: