Singapore regulator raises concern on Seize plan to purchase Trans-cab

The Competitors and Client Fee of Singapore (CCCS) on Monday raised competitors considerations a few plan by Southeast Asian ride-hailing firm Seize to accumulate Singapore’s third-largest taxi operator, Trans-cab.

The fee stated in an announcement that it was unable to conclude on the finish of its first part of overview of the proposed acquisition that the deal didn’t give rise to any competitors considerations.

“Third-party suggestions acquired by CCCS suggests considerations on the impact of Seize’s possession of the Trans-cab fleet on Trans-cab drivers’ utilization of rival ride-hail platforms, which can increase limitations to growth and entry for Seize’s rival ride-hail platforms,” the fee stated.
The fee stated it wanted to overview the impression on competitors of the proposed acquisition in higher element.

Seize and Trans-cab might supply commitments to handle any competitors considerations raised, it stated, including that in any other case it will proceed to a extra in-depth, second part of overview after receiving related paperwork from the businesses.

A Seize spokesperson stated each corporations supposed to abide by the point-to-point regulatory framework of Singapore’s Land Transport Authority, which promotes open competitors and prohibits any type of anti-competitive behaviour, resembling providing unique preparations to drivers.

“Which means Trans-cab drivers will proceed to have the pliability to earn by way of a number of ride-hailing platforms and decide up streethail rides,” the Seize spokesperson added.The Seize spokesperson stated each Seize and Trans-cab had been dedicated to making sure the advantages of an acquisition to commuters and they might assist increase the general requirements of the trade.

“Digitalising Trans-cab’s fleet will enhance driver productiveness and taxi availability so that buyers can get a journey extra simply,” the Seize spokesperson stated. “This may also enhance driver earnings.”

Nasdaq-listed Seize introduced in July that it aimed to accumulate Trans-cab in a deal that would come with a mixed taxi and private-hire-vehicle fleet of greater than 2,500 automobiles owned by Trans-Cab.

The proposed acquisition comes as Singapore noticed M&A exercise fall 69% year-on-year within the first 9 months of this 12 months, in keeping with LSEG knowledge.

That compares with a 28% fall in world M&A exercise in the identical interval from a 12 months in the past, LSEG knowledge reveals.

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