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

 


Ruling Very Serious For NZ Business

September 19, 2001

Today’s majority decision by the Court of Appeal that the Commerce Commission was not able to apply the old test in approving Progressive Enterprises’ application to acquire Woolworths New Zealand Ltd will play havoc with $3 billion worth of business transactions, said Progressive’s Managing Director Ted van Arkel.

The decision overturns the earlier judgment by a Full Court of the High Court.

“Not only does it affect our proposed acquisition, but also 10 other transactions where applications for clearance were in place before the Commerce Amendment Act 2001 came into effect on May 29.”

Mr van Arkel said the Commerce Commission’s advice was that the law in place on May 26 would apply to all applications made by that date. “We also understand this was the Government’s intent, and that was what the High Court had ruled.

“We want to continue with this transaction and will now be seeking an urgent legislative solution to confirm the ability of the Commerce Commission to apply the old test through the transition period.”

Mr van Arkel said Progressive and other businesses affected by the ruling had already spoken to the Government. What was required immediately for business certainty was a signal from Government that such legislation would be introduced without delay.

“It is New Zealand’s supermarket shoppers who will benefit if we succeed with this proposed acquisition as we will be able to increase our buying power and operating efficiencies and thereby lower prices. That will mean real price competition for Foodstuffs.”

“Foodstuffs have predictably wanted to maintain their dominance in food retailing by obstructing the prospect of increased competition, which is why they have challenged our Commerce Commission clearance both in the High Court and the Court of Appeal.”

The proposed acquisition would mean a combined market share of 40 percent for Progressive/Woolworths against Foodstuffs’ 55 percent. Progressive currently has 21 percent of supermarket sales and Woolworths 19 percent.

Ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

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:

Half A Billion Accounts, Including Xtra: Yahoo Confirms Huge Data Breach

The account information may have included names, email addresses, telephone numbers, dates of birth, hashed passwords (the vast majority with bcrypt) and, in some cases, encrypted or unencrypted security questions and answers. More>>

ALSO:

Rural Branches: Westpac To Close 19 Branches, ANZ Looks At 7

Westpac confirms it will close nineteen branches across the country; ANZ closes its Ngaruawahia branch and is consulting on plans to close six more branches; The bank workers union says many of its members are nervous about their futures and asking ... More>>

Interest Rates: RBNZ's Wheeler Keeps OCR At 2%

Reserve Bank governor Graeme Wheeler kept the official cash rate at 2 percent and said more easing will be needed to get inflation back within the target band. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news