Singapore's Competition Commission clears proposed acquisition of OldTown by JBE Asia
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OldTown will now be under the sole control of Jacobs Douwe Egberts.
ST PHOTO: SHIN MIN DAILY NEWS FILE
Lynette Khoo
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SINGAPORE - The proposed acquisition of OldTown by a unit of Jacobs Douwe Egberts (JDE) has won the green light from the competition watchdog.
Jacobs Douwe Egberts will now take sole control over OldTown.
The Competition Commission of Singapore (CCS) said on Tuesday (Jan 30) 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".
The commission said it conducted a public consultation and sought feedback from intermediate customers such as retailers, as well as corporate end-customers and other competing suppliers of instant coffee mixes and instant milk tea mixes here.
JDE is a global coffee company that owns various brands in over 27 countries across Europe, Latin America and Australia. It also owns Super Group, which manufactures more than 160 instant food and beverage products, including instant tea and coffee.
Malaysian-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 in Singapore.
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 milk tea mixes and may be able to exercise bargaining power over the merged entity.
