B the asset acquisitions may potentially increase the

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b. The asset acquisitions may potentially increase the market share of the purchaser or its group company, or potentially integrate vertically with the business activities of the purchaser or its group company Using the example above, if the purchaser or any entity in its group company is also a car rental company, the acquisition will be subject to KPPU notification because the purchase may increase the market share of the purchaser or its group company in the car rental market. However, if the purchaser is a manufacturing company, and none of its group company engages in car rental business, and the purchased cars will be used for daily transportation, then the acquisition will not need to be notified to the KPPU as it will not increase the market share of the purchaser or its group company. That being said, if the cars will be used to distribute the manufactured products of the purchaser or of its group company, the acquisition will still need to be notified to the KPPU as distribution of goods is vertically related to the manufacturing of the goods. Therefore, the motive for the asset acquisition is vital since it may ultimately determine whether an asset acquisition is notifiable or not. KPPU will examine the intended use of the acquired assets closely, including whether the asset acquisition will lead to an increase of the purchaser’s market share in certain markets. Nevertheless, KPPU also states that a conglomerate (that is neither horizontally overlaps nor vertically integrated) asset transaction may also be subject to KPPU notification. As such, this type of asset transaction will not be automatically excluded. 2. Notification Thresholds a. Calculating the threshold for a share transaction The New Regulation sees the fulfilment of the notifiability threshold based on either the assets or sales values. On the value of assets threshold, previously, only Indonesian assets will be calculated. However, based on several discussions, the KPPU has confirmed that the assets threshold under the New Regulation of IDR 2.5 trillion must be calculated on a worldwide basis. On the other hand, the position in the New Regulation for sales threshold remains the same, in that the sales threshold of IDR 5 trillion is based on the calculation of the sales of the relevant parties in Indonesia.
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