NZ Bus Ltd withdraws application to acquire Mana
Issued 20 March 2006/113
New Zealand Bus Limited withdraws application to acquire Mana Coach Services
New Zealand Bus Limited has withdrawn its section 66 clearance application to acquire the remaining 74% shares in Mana Coach Services.
New Zealand Bus is planning to proceed with the acquisition without a clearance, and the Commerce Commission is now investigating whether the proposed acquisition is in breach of section 47 of the Commerce Act 1986.
Under section 47 of the Commerce Act, a person must not acquire assets of a business or shares if the acquisition would have, or would be likely to have, the effect of substantially lessening competition in a market.
The clearance regime is voluntary. Under section 66, the Commission may grant clearances for acquisitions where it is satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in a market.