CCCS greenlights Esteel’s partial stake acquisition in HG Metal

The competition watchdog sought public feedback from 13 June until 26 June.

The Competition and Consumer Commission of Singapore (CCCS) has cleared Green Esteel’s (Esteel) proposed acquisition of new ordinary shares in HG Metal Manufacturing (HG Metal).

The proposed acquisition involves Esteel subscribing to 34 million new ordinary shares in HG Metal, resulting in a 29% stake in the company.

CCCS sought public feedback from 13 June until 26 June and found that the proposed acquisition is unlikely to substantially lessen competition because:

1. BRC and HG Metal will continue to face competition from a number of other competitors in the Relevant Markets. CCCS noted that BRC and HG Metal are not each other’s closest competitors in supplying reinforcing steel products in Singapore;
2. Barriers to entry and expansion in the Relevant Markets are not impossible to overcome. The market’s excess capacity for supplying reinforcing steel products suggests that competitors can increase their supplies based on demand; and
3. Customers generally have the ability to switch suppliers, engage multiple suppliers, and negotiate with suppliers on prices.