The proposed deal is unlikely to lead to a “substantial lessening of competition” within the market for the global supply of enterprise solid state drives to customers, says the Competition Commission of Singapore.
SINGAPORE: The proposed acquisition of computer data storage manufacturer SanDisk by rival Western Digital has been cleared by the Competition Commission of Singapore (CCS).
The watchdog said in a press release on Wednesday (Jan 20) that the proposed transaction is “unlikely to lead to a substantial lessening of competition within the market for the global supply of interface-specific enterprise solid state drives (SSDs) to customers globally”. Western Digital announced its intention to buy SanDisk for US$19 billion on Oct 21.
Elaborating on its decision, CCS said there is only one area of overlap between both parties, both globally and in Singapore: The supply of enterprise SSDs.
However, after reviewing the companies’ submissions and feedback from customers and competitors following a public consultation, the CCS came to the view that there will not be a lesser competition here and globally.
This is because after the transaction, there will still be numerous credible competitors such as Samsung, Intel and Toshiba, the watchdog noted.
It added that barriers to entry are “relatively low” as entry into Singapore is not regulated and prospective entrants do not need to be physically present here, while customers are able to switch to alternative suppliers without substantial costs.
Source: ChannelNewsAsia.Com | 20 Jan 2016