Jurisdiction - Indonesia
Indonesia – First Conditionally Approved Merger In Country For Nestlé-Wyeth Merger.

9 December, 2013



In September 2013, the Indonesian Business Competition Supervisory Commission’s (“KPPU”) announced its conditional approval of the merger between the Indonesian subsidiaries of Nestlé S.A. (“Nestlé”) and Wyeth (Hongkong) Holding Company Limited (“Wyeth”). The merger was part of a wider international merger in 2012 between the two companies, and had been fist notified to the KPPU on 11 January 2013. The subsidiaries in Indonesia were both in the business of producing infant formula milk.


The KPPU had considered several factors in its decision. First, the KPPU noted that the relevant markets were currently dominated by another company, Danone and thus, the possibility of unilateral practice was remote. Nevertheless, the KPPU noted that the acquisition would result in a more concentrated market, and the KPPU considered that this carried a risk of possible collusive behaviour. Consequently, the KPPU concluded that tight monitoring would be necessary and required the merger parties to submit monthly pricing and sales data for each market every six (6) months for a period of three (3) years from the date of the opinion. The KPPU did not require the merger parties to submit equivalent data on their competitors.


This case is a welcome addition to the KPPU’s growing body of merger and competition law. It illustrates how pragmatic solutions can be reached in dealing with anti-competitive concerns. However, the KPPU’s commitments were not clear in detailing what would be the consequences of the KPPU determining that the reports indicated an adverse effect on the market. In this regard, there is still a degree of uncertainty over the future of the merger’s operations.



For further information, please contact:


Yogi Sudrajat Marsono, Partner, Assegaf Hamzah & Partners

Eri Hertiawan, Partner, Assegaf Hamzah & Partners

[email protected]


Rikrik Rizkiyana, Partner, Assegaf Hamzah & Partners

[email protected]


Vovo Iswanto, Partner, Assegaf Hamzah & Partners

Comments are closed.