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


First BA Application Under SLC Test

Commission investigates first business acquisition application under amended Commerce Act: PMI / CGU

The Commerce Commission is investigating the first application for clearance of a business acquisition under the amended Commerce Act.

The Commission's Business Competition Branch Director, Geoff Thorn, said that the application is from PMI Mortgage Insurance Australia (Holdings) Pty Limited to acquire all shares in or assets of CGU Lenders Mortgage Insurance Limited.

PMI operates in New Zealand as a branch of its Australian parent company and CGU operates here as a branch of its UK-based parent. Both companies provide lenders mortgage insurance in New Zealand.

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

The Commission has explained how it intends to apply the new SLC test in Practice Note 4, The Commission's Approach to Adjudicating on Business Acquisitions Under the Changed Threshold in Section 47-a Test of Substantially Lessening Competition. Practice Note 4 was published on May 28, and is available from the Commission's website,, and reception at its Wellington office.

"The first decisions the Commission makes under the SLC test will set out in as much detail as possible how it intends to apply the guidelines it has published," Mr Thorn said.

"The first few decisions will obviously be important to the parties involved, and they will also be important as a guide to all businesses considering acquisitions."

The Commission expects to make its decision on July 16.


© Scoop Media

Business Headlines | Sci-Tech Headlines


"Broad-Based Growth": GDP Rises 1 Percent In June Quarter

Gross domestic product (GDP) rose 1.0 percent in the June 2018 quarter, up from 0.5 percent last quarter, Stats NZ said today. This is the largest quarterly rise in two years. More>>


Judicial Review: China Steel Tarrif Rethink Ordered

On 5 July 2017 the Minister determined not to impose duties on Chinese galvanised steel coil imports. NZ Steel applied for judicial review of the Minister’s decision. More>>

Debt: NZ Banks Accelerate Lending In June Quarter

New Zealand's nine major lenders boosted lending at the fastest quarterly pace in almost two years as fears over bad debts subsided. More>>


Balance Of Trade: Annual Current Account Deficit Widens To $9.5 Billion

New Zealand’s current account deficit for the year ended June 2018 widened to $9.5 billion, 3.3 percent of GDP, Stats NZ said today. More>>