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Ancillary Restraints in Mergers and Acquisitions: A Competition Law Perspective

Joshua Seet & Ian Wong

[2023] SAL Prac 20

Non-compete, non-solicitation and confidentiality clauses implemented in mergers and acquisitions can restrict competition. Yet, competition law recognises the commercial justifications underpinning such clauses and permits them if they are reasonably scoped and directly related to the transaction. This article examines the legality and enforceability of such clauses under Singapore competition law and provides guidance on how such clauses can be scoped in mergers and acquisitions.