Two wood industry clearance applications
Issued 7 May 2001/45
Two wood industry clearance applications:
NPIL/Rayonier MDF; and Fletcher Building/CHH doors
The Commerce Commission has received two separate applications for clearance of business acquisitions in the wood products industry.
One application is from Nelson Pine Industries Limited (NPIL) for clearance to acquire Rayonier MDF New Zealand Limited, which is Rayonier Inc's medium density fibreboard plant at Mataura.
NPIL is ultimately owned by Sumitomo Forestry Co Ltd, a Japan-based wood processing company. Rayonier Inc is a United States-based forestry and wood products company.
The second application is from Fletcher Building Products Limited for clearance to acquire the assets of Carter Holt Harvey Limited's (CHH) door manufacturing division at Wiri.
The Fletcher group of companies has wide-ranging interests in the building industry, including producing wood panels and doors. CHH has wide-ranging interests in forestry, wood products and paper industries.
Mr Thorn said that the Commission will determine what markets are relevant to each application and will then assess what impact each proposal would have in its relevant markets.
The Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market. The Commission will give a clearance if it is satisfied that dominance would not be acquired or strengthened.
The Act gives the Commission 10 working days in which to make its decision but allows for extensions of time if necessary. Working day 10 will be May 18.
Public copies of NPIL's and Fletcher Building's applications will be available within a few days.