Application for merger between Primax Electronics Ltd. and Tuo Han Co., Ltd.
Case:
Application for merger between Primax Electronics Ltd. and Tuo Han Co., Ltd.
Key Word:
digital cameras
Reference:
Fair Trade Commission Decision of August 24, 2000 (the 459th Commission Meeting); Approval Decision (89) Kung Chieh Tzu No. 801
Industry:
Cameras and Filming Equipment Manufacturing Industry (3313)
Relevant Laws:
Summary:
1. Primax Electronics Ltd. ("Primax") is a manufacturer of imaging equipment, computer peripherals, computer input devices, and automated office equipment. Its primary products include scanners, digital cameras, LCD projectors, and paper shredders. Tuo Han Co., Ltd. ("Tuo Han") is a manufacturer of traditional and digital cameras. Primax Electronics intends to combine with Tuo Han with a view towards the integration of R&D and manufacturing technologies for digital and traditional cameras and respond to the government's policy of encouraging mergers. This policy is intended to help companies expand product lines, improve capital structure, streamline management, and raise returns. After merger, Primax will be the surviving enterprise and Tuo Han the extinguished. These circumstances conform to the merger type described in Article 6(1)(i) of the Fair Trade Law (the Law) as "merg[ing] with another enterprise." Primax had sales revenue of NT$11,172,652,000 in 1999. This figure exceeds the amount that has been publicly announced as the threshold requiring an application to combine be filed with the Fair Trade Commission (the Commission) pursuant to Article 11(1)(iii) of the Law. An application to combine is therefore required. 2. The overall economic benefit of the combination to Chinese Taipei's economy is greater than the [resulting] disadvantages of restraining market competition. Moreover, this merger will not restrain competition in the domestic digital camera market. It further comports with Item 2 of the Simplified Review Procedure for Mergers "[Merger where] both enterprises have very low market shares." Accordingly, this application may be processed under simplified procedures and is approved pursuant to Article 12 of the Law. Approval Decision (89) Kung Chieh Tzu No. 801 was thereupon filed on 15 August 2000 and retroactively approved by the Commission at its 459th meeting on 24 August 2000. Appendix: Primax Electronics Ltd.'s Uniform Invoice Number: 12486393 Tuo Han Co., Ltd's Uniform Invoice Number: 36185950 Summarized by Yeh Tien Fu; Supervised by Shih Gin Tsun