KPPU has completed Assessment of PT Axioo International Indonesia Acquisition by PT Erajaya Swasembada Tbk.
Jakarta (20/02) – The Business Competition Supervisory Commission (KPPU) on February 20, 2018 has completed its assessment and issued an Opinion regarding the share acquisition of PT Axioo International Indonesia by PT Erajaya Swasembada Tbk.
PT Axioo International Indonesia is a business entity engaged in manufacturing information technology (IT), while PT Erajaya Swasembada Tbk is a business entity engaged in the distribution, trading and after-sales service of IT products. PT Erajaya Swasembada Tbk has a sales centre for mobile phone products under the name Erafone.
KPPU considers that there is no similar product market between the two parties, so the assessment is focused on the dominant potential and integration that both parties have. The two companies merged for PT Axioo International Indonesia to produce cellular phones with the Venera brand and then distributed distribution lines of PT Erajaya Swasembada Tbk. However, based on research and data obtained by the KPPU, the Venera cellular phone is not a dominant product in the mobile phone market.
Based on the further analysis, the KPPU considered the acquisition of PT Axioo International Indonesia by PT Erajaya Swasembada Tbk has no impact on manufacturing industry and IT product distribution in Indonesia. Therefore, the Commission issued an Opinion that there is no allegation of monopolistic practices and / or unfair business competition due to the acquisition of PT Axioo International Indonesia by PT Erajaya Swasembada Tbk.