Singapore

JDE's proposed acquisition of OldTown cleared

The proposed acquisition of OldTown by a unit of Jacobs Douwe Egberts (JDE) has received the green light from the competition watchdog. JDE will now take sole control over OldTown.

The Competition Commission of Singapore (CCS) said yesterday that the transaction "will not lead to a substantial lessening of competition in the supply of instant coffee mixes and instant milk tea mixes for in-home sales in Singapore".

JDE is a global coffee company that owns various brands in over 27 countries.

It also owns Super Group, which manufactures more than 160 instant food and beverage products, while Malaysia-listed OldTown makes coffee and other beverages and operates cafes under the OldTown White Coffee brand.

The two firms overlap in the supply of instant coffee mixes and instant milk tea mixes for in-home sales here.

The CCS said they face competition from a number of suppliers in these markets, while barriers to entry and expansion are relatively low.

It also noted that larger intermediate customers generally have some negotiating power with the suppliers of instant coffee and milk tea mixes. - LYNETTE KHOO

BUSINESS & FINANCE