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

 


Howard Smith to acquire business group from OPSM


Media Release

Issued 28 June 2001/78

Commission clears Howard Smith to acquire business group from OPSM Protector Limited

The Commerce Commission today cleared Howard Smith Limited to acquire OPSM Protector Limited's Protector Supply Group.

Commissioner Paula Rebstock said that the decision relates to OPSM's distribution business only, and not its manufacturing business.

Both companies are listed on the Australian Stock Exchange and are involved in the supply of personal and industrial safety equipment and clothing. The relevant New Zealand subsidiaries of Howard Smith are NZ Safety Ltd, Benchmark Building Supplies Limited, and J Blackwood & Son (New Zealand) Ltd. OPSM Protector Ltd owns Protector Safety Supply Ltd in New Zealand.

Ms Rebstock said that the Commission was satisfied that, should the acquisition go ahead, the merged entity would not acquire or strengthen dominance in any market. In this case the relevant markets are national markets for the supply of:

* safety products, and * janitorial, hygiene and medical products.

The merged entity would have a significant share of the safety products market. Purchasers, including major industrial users, in this market have stated, however, that they would have other options if the merged entity tried to use its market power to increase prices or reduce services. Ms Rebstock said that the Commission was satisfied that the merged entity would be constrained by the countervailing power of purchasers.

In the market for janitorial, hygiene and medical products, the merged entity would have a market share well within the Commission's safe harbour guidelines, with existing competition providing considerable constraint.

The safe harbours are up to 40 percent market share or 60 percent if at least one competitor has 15 percent of the market or more.

"Having regard to all the relevant factors, the Commission is satisfied that the proposed acquisition would not result, or be likely to result, in any person acquiring or strengthening a dominant position in any market," Ms Rebstock said.

Background

Howard Smith made its application before amendments to the Commerce Act took effect on May 26.

Before the amendments, the Act prohibited business acquisitions that resulted in dominance being acquired or strengthened in a market. The amended Act prohibits acquisitions that substantially lessen competition (SLC) in a market.

The Commission took the view that applications on hand at May 26 should be investigated under the law as it was when the applications were made.

Yesterday, the Auckland High Court released a judgment upholding the Commission's view and ruling that the dominance test should be applied.

Ms Rebstock said that it is important to note that the Court's decision applies to only those applications on hand at May 26. Applications made on or after May 26 will be investigated under the SLC test.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Onetai Station: Overseas Investment Office Puts Ceol & Muir On Notice

The Overseas Investment Office (OIO) has issued a formal warning to Ceol & Muir and its owners, Argentinian brothers Rafael and Federico Grozovsky, for failing to provide complete and accurate information when they applied to buy Onetai Station in 2013. More>>

ALSO:

Tomorrow, The UN: Feds President Takes Reins At World Farming Body

Federated Farmers president Dr William Rolleston has been appointed acting president of the World Farmers’ Organisation (WFO) at a meeting in Geneva overnight. More>>

ALSO:

I Sing The Highway Electric: Charge Net NZ To Connect New Zealand

BMW is turning Middle Earth electric after today announcing a substantial contribution to the charging network Charge Net NZ. This landmark partnership will enable Kiwis to drive their electric vehicles (EVs) right across New Zealand through the installation of a fast charging highway stretching from Kaitaia to Invercargill. More>>

ALSO:

Watch This Space: Mahia Rocket Lab Launch Site Officially Opened

Economic Development Minster Steven Joyce today opened New Zealand’s first orbital launch site, Rocket Lab Launch Complex 1, on the Mahia Peninsula on the North Island’s east coast. More>>

Earlier:

Marketing Rocks!
Ig Nobel Award Winners Assess The Personality Of Rocks

A Massey University marketing lecturer has received the 2016 Ig Nobel Prize for economics for a research project that asked university students to describe the “brand personalities” of three rocks. More>>

ALSO:

Nurofen Promotion: Reckitt Benckiser To Plead Guilty To Misleading Ads

Reckitt Benckiser (New Zealand) intends to plead guilty to charges of misleading consumers over the way it promoted a range of Nurofen products, the Commerce Commission says. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news