Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Commission Clears Armourguard To Acquire Group 4

Issued 23 February 2001/16

The Commerce Commission has cleared Armourguard Security Limited to acquire all of the shares in Inacro Limited, which owns Group 4 Security (NZ) Limited.

Commission Chair John Belgrave said that the Commission was satisfied that, if the proposal goes ahead, Armourguard would not acquire or strengthen a dominant position in any market in New Zealand. The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened.

In this case, the Commission concluded that the relevant markets are: * the national market for cash processing services, and * regional markets for manned security services.

In the market for cash processing services, the proposal would result in Armourguard having a market share outside the Commission's "safe harbours". The safe harbours are up to 40 percent market share or up to 60 percent if another competitor has 15 percent or more.

The Commission concluded that Armourguard would be constrained in this market by the one other major firm, Chubb NZ Limited, and the high countervailing power of the banks. Some of the banks have stated that if they were dissatisfied with prices and services of a security company, then they could switch to another company.

Armourguard's and Group 4's combined market shares in regional markets for manned security services would be within the safe harbours.

Public copies of the Commission's decision, Decision No. 419: Armourguard Security Limited and Inacro Limited, will soon be available from its website, www.comcom.govt.nz, and in hard copy from reception at its Wellington office, Level 7 Landcorp House, 101 Lambton Quay.

Media contact: Commerce Act Manager Geoff Thorn Phone work (04) 498 0958, cellphone 021 661 104

Senior Advisor Communications Vincent Cholewa Phone work (04) 498 0920, home (04) 477 0039

Commission media releases can be viewed on its web site www.comcom.govt.nz

Regards Leo van Schyndel Records Officer Corporate Services Direct dial : (04) 498-0929 E-mail : leo.vanschyndel@comcom.govt.nz


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Voluntary Administration: Renaissance Brewing Up For Sale

Renaissance Brewing, the first local company to raise capital through equity crowdfunding, is up for sale after cash flow woes and product management issues led to the appointment of voluntary administrators. More>>

Elsewhere:

Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:

Media Mega Merger: Full Steam Ahead For Appeal

New Zealand's two largest news publishers have confirmed they are committed to pursuing their appeal against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>