The Competition and Consumer Commission of Singapore (CCCS) has cleared the proposed acquisition of Promontoria Holding 243 B.V by Sats International SAS.
Promontoria Holding is a holding company that indirectly holds 100% of the shares in WFS Global Holdings S.A.S.
WFS, or Worldwide Flight Services (WFS), is the world’s largest air cargo handler.
“Following its assessment, CCCS has concluded that the proposed transaction, if carried into effect, will not infringe section 54 of the Competition Act 2004, which prohibits mergers which have resulted, or may be expected to result, in a substantial lessening of competition (SLC) within any market in Singapore,” reads the statement dated Jan 27.
The CCCS accepted an application for a decision on whether the proposed transaction would infringe the section 54 of the Competition Act 2004 on Nov 2, 2022.
“The parties, i.e. Sats and WFS, do not compete in the provision of any products and services in Singapore, and potential competition between the parties in the provision of any products and services is limited,” CCCS continues.
See also: SATS to become world’s largest cargo handler with $1.64 bil acquisition of cargo handling firm WFS
“Competition concerns are unlikely to arise from the vertical links between the parties, where Sats provides ground handling services and other peripheral services to WFS at the JetQuay CIP Terminal,” it adds.
Finally, the CCCS found that concerns of any competition are also “unlikely to arise” from the combination of the parties’ portfolios for the supply of ground handling services, cargo handling services, premium lounge services and premium bespoke passenger services.
Sats, on Sept 28, 2022, announced its plans to acquire WFS for EUR1.19 billion ($1.64 billion) in cash.
See also: Sats shareholders approve WFS acquisition, projected to be completed by April 2023
Sats’ shareholders, on Jan 18, approved the proposed acquisition, which is slated to be completed in April.
Shares in Sats closed 4 cents lower or 1.3% down at $3.03 on Jan 27.
