KPPU has completed its Merger Assessment of the Acquisition of Solvadis Holding S.a.r.l by Sojitz Corporation.
Jakarta – The Business Competition Supervisory Commission (KPPU) on February 20, 2018 has completed its assessment and issued an Opinion on the share acquisition of Solvadis Holding S.a.r.l by Sojitz Corporation.
The acquisition of Solvadis Holding S.a.r.l by Sojitz Corporation is an acquisition occurring overseas, thus categorized as foreign acquisition. However, since the parties have business activities in Indonesia and the acquisition has complied with the provisions of Government Regulation No. 57 of 2010, the acquisition shall be notified to KPPU. Solvadis Holding S.a.r.l is a privately owned business entity in Luxembourg, while Sojitz Corporation is a business entity based in Japan.
Sojitz Corporation has various business activities in Indonesia, including coal mining, chemical trading, property, retail and others. While Solvadis Holding S.a.r.l only trades imports of corn starch chemicals under the name ‘’Dextrin’’ used for health and cosmetic products. Based on the information obtained, Sojitz Corporation also traded the import of corn starch chemicals, but the corn type imported by Sojitz Corporation has the specification of Starch for Fondry Moldex.
KPPU considered that the parties do not have different types of products, so the parties are not in the same relevant market. The acquisition is an acquisition type of conglomeration and based on data and analysis, KPPU found that the parties are not dominant business actors in their respective product markets.
Based on the above analysis, the KPPU considers that the acquisition does not result in monopolistic practices and / or unfair business competition, so as to express the opinion of no allegations of monopolistic practices and / or unfair business competition resulting from the acquisition of Solvadis Holding S.a.r.l by Sojitz Corporation.