The Independent Consumer and Competition Commission (ICCC) has given clearance to Sime Darby Oils (PNG) Limited (SDO PNG) to acquire the Downstream business operations, including related assets, of New Britain Palm Oil Limited (NBPOL).
ICCC Commissioner and Chief Executive Officer Paulus Ain said this is following ICCC's assessment that the Proposed Acquisition would not have the effect of substantially lessening competition in any market(s) in Papua New Guinea (PNG).
According to available information, ICCC noted that both SDO PNG and NBPOL are part of the Sime Darby Group and are wholly owned subsidiaries of Sime Darby Plantation Berhad (SDPB).
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.
"SDO PNG would be replacing NBPOL in the downstream oil palm business activities of the Sime Darby Group in PNG post-acquisition," Ain explained.
The ICCC also noted that the Proposed Acquisition would only result in the separation of the business segments (upstream and downstream) within NBPOL; and would not enhance the market position of SDO PNG, in terms of control, in any relevant market(s) in PNG.
Given the Proposed Acquisition would be an internal restructure within the Sime Darby Group, the ICCC considered that there would be no serious competition impact the Proposed Acquisition would have on any domestic market(s) in PNG.
"Therefore, the Proposed Acquisition was cleared to proceed," Ain said.