The Competition and Consumer Commission of Singapore (CCS) has approved the proposed merger between Analogic Corporation and the Security Enterprise Solutions and Industrial and General Automation businesses of Leidos Inc. The decision follows an assessment that the merger will not significantly reduce competition in the global supply of explosive detection systems (EDS) for both checked and cabin baggage, which are crucial for airport security.
Both companies are key players in providing EDS used to screen baggage at airports. The CCS’s evaluation concluded that the merger would not harm competition in Singapore’s market due to several factors. Firstly, the merged entity will continue to face competition from established global EDS suppliers. Secondly, there remains potential for existing and new suppliers to enter or expand within the market. Lastly, Singapore’s sole airport customer retains significant bargaining power, allowing it to select suppliers through competitive tender processes.
The CCS’s decision ensures that the market for EDS remains competitive, safeguarding the interests of consumers and maintaining high standards of security at airports. The merger is expected to proceed without disrupting the current market dynamics. For further details, the CCS’s public register provides additional information on the merger.
