ICCC clears acquisition

THE Sime Darby Oils (PNG) Limited has acquired the downstream business operations and assets of New Britain Palm Oil (NBPO), after the Independent Consumer and Competition Commission (ICCC) gave its clearance.
ICCC chief commissioner and chief executive officer Paulus Ain said this following an ICCC assessment that proposed acquisition would not have, or would not likely have, the effect of substantially lessening competition in any market(s) in the country.
The ICCC noted that both SDO PNG and NBPOL were part of the Sine Darby Group and wholly owned subsidiaries of Sime Darby Plantation Berhad.
The proposed acquisition would only be an internal restructure within the Sime Darby Group as part of SDPB’s direction to separate the upstream and downstream operations of all its subsidiaries globally.
Ain said the SDO PNG would be replacing NBPOL in downstream oil palm business activities of the Sime Darby Group in Papua New Guinea post-acquisition.
“We also noted that the proposed acquisition would only result in the separation if the business segments, upstream and door within NBPOL, and would not enhance the market position of SDO PNG, in terms of control, in any relevant markets in Papua New Guinea,” he said.
“Given the proposed acquisition will be an internal restructure within Sime Darby Group, we considered that there would be no serious competition impact the proposed acquisition would have on any domestic market.”
He added after carefully considering all the facts presented to the ICCC, the commission therefore went ahead and cleared the proposed acquisition.