Clearance Sought To Form Joint Venture Company
Clearance Sought To Form Merino NZ And Wrightson Joint Venture Company
The Commerce Commission has received an application for a yet to be formed joint venture company to acquire specified merino wool assets from Merino New Zealand Limited and Wrightson Limited.
Merino New Zealand is owned by Merino Inc, which is an incorporated society formed to represent the interests of growers of merino fine wool fibre, and the New Zealand Wool Board.
Under the proposal, the joint venture company would acquire the assets related to Merino NZ's national and international marketing of merino fine wool fibre.
Wrightson is listed on the New Zealand Stock Exchange and is involved in a wide range of rural servicing activities.
Under the proposal, the joint venture company would acquire Wrightson's business assets relating to buying and selling merino fine wool fibre.
The Director of the Commission's Business Competition Branch, Geoff Thorn, said that the Commission must determine what markets are relevant to the proposal, and then assess what impact the proposal would have on those markets.
The Commerce 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 is not acquired or strengthened.
The Commission is due to make its decision on June 7.
Public copies of the joint venture company's application will be available from the Commission within a few days.