4. Merger Control
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Questions and Answers

What is the primary concern addressed by Section 54 regarding mergers in Singapore?

  • Substantial lessening of competition (correct)
  • Ensuring fair pricing strategies
  • Encouragement of joint ventures
  • Promotion of market monopolies
  • Which of the following factors is NOT considered under Section 54 in determining if a merger lessens competition?

  • Market share of the merged entity
  • Net economic efficiencies
  • Pricing strategies of competitors (correct)
  • Existing competition in the market
  • Which section addresses the prohibition of anti-competitive agreements?

  • Section 47
  • Section 34 (correct)
  • Part III, Division 4
  • Section 54
  • What does the term 'de facto control' refer to in the context of mergers?

    <p>Control without formal governance structures</p> Signup and view all the answers

    What must be evaluated to determine if there is a substantial lessening of competition as per the merger control process?

    <p>Market share of the merged entity</p> Signup and view all the answers

    In the context of merger control, what is the effect of cross-cutting established thresholds?

    <p>They indicate potential for regulatory approval</p> Signup and view all the answers

    Which part of the prohibition regime deals with the abuse of dominant market positions?

    <p>Part III, Division 3</p> Signup and view all the answers

    What must occur for a merger to be subject to Section 54's prohibition?

    <p>The merger must result in or be expected to result in competition reduction</p> Signup and view all the answers

    Study Notes

    ### Merger Control - Singapore

    • Section 54 prohibits mergers which result or are likely to result in a substantial lessening of competition (SLC) in any market in Singapore.
    • Merger includes joint ventures, acquisitions of de facto control, etc
    • Excluded from Section 54: Section 54(7) carve-outs and the Fourth Schedule
    • Indicative Notification Thresholds:
      • SLC will likely result in a merger if the Merged entity will have a market share of 40% or more
      • SLC is possible in a merger where the Merged entity has a market share between 20% and 40%
    • SLC factors exist even if the threshold is not breached.
    • Existence of Net Economic Efficiencies are considered when determining if there is a SLC

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    Description

    This quiz focuses on the regulations surrounding merger control in Singapore, particularly Section 54 which prohibits mergers that may significantly lessen competition. It also covers key thresholds for market share and considerations for substantive economic efficiencies. Understand the essential aspects of merger laws in Singapore.

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