SG competition watchdog opens Grab, Trans-cab merger for public comments

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The Competition and Consumer Commission of Singapore (CCCS) is seeking public feedback on Grab‘s proposed acquisition of Trans-cab through its Grab Rentals subsidiary.

Grab and Trans-cab, a private taxi operator that also provides car rentals and other services, submitted the merger proposal to the CCCS in August for a decision on whether the acquisition would violate a section of the Competition Act 2004. The rule prohibits mergers that may substantially lessen competition in any market in Singapore.

In Grab and Trans-cab’s merger notification to CCCS, they argued that the acquisition would not harm competition in the relevant markets, as the two firms have minimal overlap, and Grab will continue to face strong competition.

A spokesperson for Grab told Tech in Asia that they do not have more information to share at the current stage of the deal.

The CCCS will evaluate the acquisition based on information provided by Grab and Trans-cab, as well as feedback received from the public and other stakeholders. The public has until August 25 to submit their views.

Grab confirmed the acquisition plan in July. The deal will give Grab control of over 2,200 taxis and more than 300 private-hire vehicles as well as the maintenance workshop and fuel pump operations of Trans-cab.

While the company did not disclose the financial details of the deal, a Straits Times report pegged it at around US$75 million.

See also: Does combining Grab with asset-heavy Trans-cab make sense?