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

 

Commerce Commission considering divestment

22 July 2004

Commerce Commission considering divestment undertaking from Gallagher

The Commerce Commission has received a divestment undertaking relating to Gallagher Holdings Limited's application for clearance to acquire Tru-Test Corporation.

Gallagher has agreed to divest the PEL brand, associated with electric fencing.
The proposed divestment is likely to include:

- the PEL brand for use in the New Zealand market;
- supply contracts with rural resellers;
- free access to all intellectual property; and
- plant and equipment.

Gallagher has offered the divestment undertaking with the intention of reducing the market share that Gallagher and Tru-Test would have if they were to merge. Gallagher also considers that the proposed divestment would introduce an additional constraint on the merged entity post-acquisition, in order to prevent the proposed merger resulting in a substantial lessening of competition in the electric fencing market.

The Commission has commenced further consultation with industry participants, including Gallagher and Tru-Test, their competitors, suppliers and potential entrants to the market. This consultation will assist the Commission in assessing whether the acquisition, including the divestment undertaking, is likely to have the effect of substantially lessening competition in a market.

An extension of time has been agreed with the parties to allow for this consultation, with the Commission's decision is now due on 19 August 2004.

A public version of the divestment undertaking will shortly be available on the Commission's website under adjudication.

Background

The Commission is able to accept undertakings pursuant to s 69A of the Commerce Act which states:

"In giving a clearance or granting an authorisation under section 66 or section 67 of this Act, the Commission may accept a written undertaking given by or on behalf of the person who gave a notice under section 66(1) or section 67(1) of this Act, as the case may be, to dispose of assets or shares specified in the undertaking."

The Commission is able to accept such undertakings at any stage during the clearance application process.

ENDS


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Media Mega Merger: StuffMe Hearing Argues Over Moveable Feast

New Zealand's two largest news publishers are appealing against the Commerce Commission's rejection of the proposal to merge their operations. More>>

Elsewhere:


Approval: Northern Corridor Decision Released

The approval gives the green light to construction of the last link of Auckland’s Western Ring Route, providing an alternative route from South Auckland to the North Shore. More>>

ALSO:


Crown Accounts: $4.1 Billion Surplus

The New Zealand Government has achieved its third fiscal surplus in a row with the Crown accounts for the year ended 30 June 2017 showing an OBEGAL surplus of $4.1 billion, $2.2 billion stronger than last year, Finance Minister Steven Joyce says. More>>

ALSO:

Mycoplasma Bovis: One New Property Tests Positive

The newly identified property... was already under a Restricted Place notice under the Biosecurity Act. More>>

Accounting Scandal: Suspension Of Fuji Xerox From All-Of-Government Contract

General Manager of New Zealand Government Procurement John Ivil says, “FXNZ has been formally suspended from the Print Technology and Associated Services (PTAS) contract and terminated from the Office Supplies contract.” More>>