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

 

Commission clears Progessive Woolworths buy

Media Release

Issued 13 July 2001/84

Commission clears Progessive Enterprises to acquire Woolworths

The Commerce Commission today cleared Progessive Enterprises to acquire all the shares in Wooloworths (New Zealand) Limited. The clearance was subject to divestments of supermarkets in the Birkenhead (North Shore, Auckland) and Te Awamutu areas.

Commission Chair John Belgrave said that the Commission was satisfied that, should the proposed acquisition go ahead, Progressive would not acquire or strengthen dominance in any market.

The markets in which there would be aggregation of market share would be the markets for:

- The market for the retailing of grocery items in supermarkets, incorporating regional markets not less than 5 km in radius

- The national market for the wholesale supply of groceries.

For most areas the merged entity would face strong competition from either Pak'N Save or New World, banner groups owned by the Foodstuffs co-operatives.

In total, the Commission identified five areas where the acquisition would lead to a high degree of market concentration: These are:

* Te Awamutu;

* North Shore Auckland;

* West Auckland;

* Nelson/Stoke/Richmond; and

* Tauranga/Mt Maunganui.

"Taking all factors into account, including the divestment undertakings, we are satisfied that the proposal would not, or would not be likely to result, in Progressive acquiring or strengthening a dominant position in any market," Mr Belgrave said.

Further details will be available when public copies of the Commission's full decision are released early next week. The decision will be available on the Commission's website, www.comcom.govt.nz, and in hard copy.

Background Progressive Enterprises 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 Auckland High Court has recently ruled that the dominance test should be applied to applications which were lodged before the amendments came into force. That decision is the subject of an appeal by Foodstuffs.

ENDS

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Climate Summary: NZ’s Equal-2nd Warmest Year On Record

Annual temperatures were above average (+0.51°C to +1.20°C above the annual average) across the majority of New Zealand... 2018 was the equal 2nd-warmest year on record for New Zealand, based on NIWA’s seven-station series which began in 1909. More>>

ALSO:

GDP: Economic Growth Dampens In The September Quarter

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today... GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter. More>>

ALSO:

Up $1.20: $17.70 Minimum Wage For 2019

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO:

Retail: IKEA To Open In New Zealand

Inter IKEA Systems B.V. is today announcing its intentions to grant the Ingka Group exclusive rights to explore expansion opportunities in New Zealand. More>>