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

 

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, www.comcom.govt.nz, and in hard copy from reception at its Wellington office, Level 7 Landcorp House, 101 Lambton Quay.


© 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>>