4 October 2007 –  Drew & Napier LLC announced today that its Competition Law Merger team has cleared the first M&A filing under Section 54 of the Competition Act. Merger control under Section 54 of the Act came into effect on 1 July 2007. The team obtained approval for the Intel-STMicroelectronics joint venture, from the Competition Commission of Singapore (CCS), in under five weeks.

The application filed by Drew & Napier LLC on 28 August 2007 was the first of its kind in Singapore under the Competition Act and CCS’ decision is significant as it provides an insight into how it will conduct merger reviews for global transactions.

Said Lim Chong Kin, who leads the competition merger team at Drew & Napier, “The significance of the decision does not lie in the case but in the manner in which the CCS handled its first global merger review. Prior to this case, there were concerns expressed by many of our MNC clients as to how merger control laws in Singapore may affect their business efficiency. Their billion dollar mergers are global in nature. Singapore is a relatively small market to them. The only link is that they have manufacturing facilities or head quarter operations here. It is difficult to explain why they have to get approval from a tropical island to complete their global merger. With this decision, CCS has shown that they can clear global mergers quickly and effectively. This decision should allay concerns about Singapore’s merger control laws.”

Notes to Editor:

1. On 22 May 2007, Intel Corporation, STMicroelectronics and Francisco Partners entered into a US$3.6 billion transaction to create a joint venture vehicle (Intel-STM joint venture). Intel is a US corporation. STM is a French/Italian group with its head quarters in Switzerland. Francisco Partners is a global fund.
2. Drew & Napier was appointed by Intel Corporation and STMicroelectronics to advise on the joint venture, with Francisco Partners, and to obtain regulatory clearance from the CCS. The Intel-STM joint venture will operate globally in the research, development, marketing, manufacture and sale of flash memory, a form of non-volatile memory possessing semiconductor properties that is commonly used in data storage cards, mobile phones and other portable devices.
3. A copy of the decision is available at: www.ccs.gov.sg
4. The International Bar Association week takes place in Singapore from 14 to 19 October 2007.