Bungy NZ receives clearance to acquire Pipeline
Issued 24 July 2003-04 / 011
Bungy New Zealand receives Commerce Act clearance to acquire Pipeline Bungy
The Commerce Commission has cleared Bungy New Zealand Limited to acquire the Pipeline Bungy business operating in Skippers Canyon, Queenstown.
The Commission determined that Bungy is in the same market as other adventure tourism operators in the Queenstown Lakes region.
Commission Director of Business Competition Geoff Thorn said the number of competitors in the market, and the level of competition for the Queenstown tourist dollar, indicated that any change in the market post acquisition would be minimal.
"The Commission is satisfied that the proposed acquisition would not have, nor would be likely to have, the effect of substantially lessening competition. The merged entity would be constrained by existing competition and potential competition from entry," said Mr Thorn.
Pipeline Bungy is currently owned and operated by Ngai Tahu Tourism Limited. Ngai Tahu Tourism provides several adventure tourism activities including; bungy jumping, jet boating and scenic trips by four-wheel drive. The acquisition relates only to the bungy segment of their business activities.
Bungy New Zealand acts as the parent and holding company for the AJ Hackett Bungy brand and operates in the adventure tourism market, specialising in bungy jumping activities in the Central Otago and Auckland regions.
A copy of the Commission's decision is available on the Commission's http://www.comcom.govt.nz/adjudication .