Jacobs Douwe Egberts purchase of OldTown approved by CSS

first_imgJacobs Douwe Egberts’ purchase of OldTown approved by CSSPosted By: News Deskon: January 31, 2018In: Beverage, Business, Industries, Mergers & Acquisitions, Tea & CoffeePrintEmailJacobs Douwe Egberts’ (JDE) proposed MYR 1.47 billion ($361 million) acquisition of Malaysian coffee producer OldTown Berhad has been approved by The Competition Commission of Singapore (CCS).Both companies distribute instant coffee and instant milk tea mixes for in-home sales in the country, and the CSS launched an investigation as it felt a merged company could dominate this segment.As part of the review, the CCS conducted a public consultation and received feedback from retailers and other suppliers of instant coffee and milk tea mixes.The CCS report stated: “After reviewing JDE’s submissions and the feedback received, CCS concluded that the proposed transaction, if carried into effect, will not infringe the prohibition in the act against anti-competitive mergers.“The proposed transaction, if carried into effect, 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 parties face competition from a number of suppliers in the market for the supply of instant coffee mixes for in-home sales in Singapore as there are multiple brands of instant coffee mixes for consumers to choose from, such as Nescafé, Gold Roast, and Alicafé.“Likewise, the parties face strong competition from other suppliers (e.g., Unilever) in the market for the supply of instant milk tea mixes for in-home sales in Singapore.”The purchase represents JDE’s second acquisition in Asia over the past year, following the purchase of Singapore-listed coffee manufacturer Super Group last June.Share with your network: Tags: coffeeJacobs Douwe EgbertsOldTown BerhadSingaporetealast_img

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