CCS clears Analogic-Leidos merger in explosive detection systems

The watchdog says global rivals and airport buyer power will constrain merged business.

The Competition and Consumer Commission of Singapore (CCS) has cleared the proposed Analogic-Leidos merger after finding it unlikely to substantially lessen competition in the supply of explosive detection systems (EDS).

Following its assessment, CCS said the merged business will continue to face competition from established global suppliers.

The parties will also remain constrained by the bargaining power of their sole airport customer in Singapore, which can choose amongst suppliers through competitive tender processes.

Moreover, existing and potential rivals can still expand or enter the market, the watchdog added.

The transaction covers Leidos, Inc.’s Security Enterprise Solutions and Industrial and General Automation businesses, which are being combined with Analogic Corporation.

Both businesses supply EDS for checked and cabin baggage, including after-market services.

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