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Pacific Dunlop to Acquire Sara Lee Apparel Assets

Media Release

Issued 14 March 2001/ 24

Commission Clears Pacific Dunlop to Acquire Sara Lee Apparel Assets

The Commerce Commission has cleared Pacific Dunlop Holdings (NZ) Limited to acquire certain assets from Sara Lee Apparel (NZ) Limited.

Commission Chair John Belgrave said that the Commission was satisfied that, if the proposal goes ahead, Pacific Dunlop 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 markets for the manufacture (including imports) / supply of:

* Men's underwear; * Women's underwear; * Women's pantyhose; * Adults' socks; * Children's socks; * Thermal underwear; and * Men's outerwear.

In the markets for men's underwear, pantyhose, thermal underwear, and adults' socks, the proposal would result in Pacific Dunlop 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 Pacific Dunlop would be constrained in these markets by existing and potential competitors, particularly from imports, and the high countervailing power of larger retailers such as Farmers and The Warehouse.

Pacific Dunlop's and Sara Lee's combined market shares in the markets for women's underwear, children's socks and men's outerwear would be within the safe harbours and therefore do not cause dominance issues.

Public copies of the Commission's decision, Decision No. 422: Pacific Dunlop Holdings (NZ) Limited and Sara Lee Apparel (NZ) Limited will soon be available from its website,, and in hard copy from reception at its Wellington office, Level 7 Landcorp House, 101 Lambton Quay.

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