Merger criteria get green light
The Trade Competition Commission (TCC) resolved at its second meeting this year to approve criteria governing business mergers. Violation of the criteria will be dealt with under the Trade Competition Act of 1999, Commerce Minister Boonsong Teriyapirom sa
The first criterion states that the business must have at least 30 per cent market share before or after the merger, and revenue in the previous year of at least Bt2 billion. Second, shares with voting rights must account for at least 25 per cent of the total in the case of a publicly listed firm, and 50 per cent for a limited company.
For businesses governed by specific laws, the TCC’s legal subcommittee will set the criteria for the merger. as well as business merger application within 90 days for submission to the TCC for approval accordingly.
In the case of the merger between Siam Makro and CP All, the TCC is aware of the huge market power resulting from it, but the merged business entity also now has strong bargaining power with suppliers, which should benefit consumers, Boonsong said.
As for the case of AP Honda Co, the TCC opposed the attorney-general for not pursuing a lawsuit against the company, which the commission felt had practised unfair trade against its competitors in violation of the Trade Competition Act.
In addition, the TCC acted on complaints regarding the blocking of sales of trade rivals’ energy-drink products. The commission has asked the investigative subcommittee to conduct a probe and report a finding or provide an opinion to the TCC within 90 days.
