CCS: WMS-DMTS Merger Raises Concerns

Image Courtesy: Wilhelmsen

The Competition Commission of Singapore (CCS) has raised competition concerns on the proposed merger between Wilhelmsen Maritime Services (WMS) and Drew Marine Technical Solutions (DMTS). 

Having completed its Phase 1 review of the proposed acquisition by WMS of Drew Marine’s technical solutions, fire, safety and rescue businesses, CCS concluded that the two parties “appear to be each other’s closest competitors.

This is due to the fact that WMS and DMTS are two of the largest players possessing extensive global networks of end-to-end distribution and ancillary services for the provision of chemicals, gases and equipment to the marine sector, CCS said.

Further, the commission said that alternative suppliers may face difficulty in achieving sufficient geographic scale to be viable alternative sources of supply and exerting sufficient competitive pressure on the merged entity post-merger.

“The proposed transaction may therefore substantially lessen competition in the supply of these products in Singapore, and may lead to price increases, deterioration in quality of products and/or service levels,” CCS explained.

At this stage, the parties may commit to addressing the potential competition concerns that may arise or the merger will proceed to a detailed Phase 2 review, according to the commission.

On August 10, 2017, WMS applied for a decision by CCS on whether the proposed acquisition would infringe the prohibition in the Competition Act against anti-competitive mergers.

WMS signed in April an agreement worth USD 400 million to acquire the technical solution business from Drew Marine, aiming at enhancing the scale and geographic reach of its marine products division.

Share this article

Follow World Maritime News

In Depth>

Events>

<< Dec 2017 >>
MTWTFSS
27 28 29 30 1 2 3
4 5 6 7 8 9 10
11 12 13 14 15 16 17
18 19 20 21 22 23 24
25 26 27 28 29 30 31

APM – ASIA PACIFIC MARITIME 2018

27 years in the making, APM is the premier shipbuilding & marine, workboat and offshore exhibition in Asia trusted by generations of industry professionals.

read more >

Mega Cargo Show 2018

The focus of the event is to bring all connected with cargo fraternity on a single platform…

read more >

Vietship 2018

Vietship is the largest and longest established exhibition in Vietnam featuring all aspect of Shipbuilding, Shipping and Offshore Technology.

Since its first event in 2002, Vietship has become the convergence and platform of advanced technologies regional and worldwide in shipbuilding and ship repair, marine equipment, waterway transportation and services, marine and offshore engineering.

After 16 years of eight consecutive editions, Vietship has affirm itself as an important event in enhancing cooperation and development, attracting investments, exchanging technology and creating ideal opportunities for trade promotion in the international maritime industry.

More info

read more >

LNG Bunkering Summit 2018

The conference will cover the obstacles facing both the shipping and port communities, exploring developments in conversion and new builds…

read more >