Brussels, 17/02/2003 (Agence Europe) - On 14 February the European Commission approved the acquisition of joint control by the conglomerate Singapore Technologies over the French accommodation firm Oriville, previously solely controlled by the US financial firm Goldman Sachs.
In January 2003, the Commission received the notification of a proposed operation whereby Singapore Technologies, through its subsidiary Ascott, acquires from Goldman Sachs joint control over the French undertaking Oriville. Singapore Technology is a technology-based conglomerate active inter alia in the accommodation sector.
Ascott is a short stay residence operator, active in several countries in Asia, in Australia and in the UK. Goldman Sachs is a US-based global investment banking and securities firm, active although marginally in the accommodation sector. Oriville is a French company which operates short stay residences mainly in France, but also in some other European countries, notably in the UK.
The parties' activities only overlap in London where Ascott and Oriville operate short stay residences and where Singapore Technologies and Goldman Sachs operate conventional hotels. The Commission's review showed that although the merged entity will hold a significant share of the supplies of short stay residences in London, it will be facing a sufficient competitive constraint from both short stay residences and conventional hotels operators, including large international companies. Therefore, the Commission has come to the conclusion that the transaction would not lead to the creation of a dominant position and has consequently decided to clear the transaction.