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

 


Commission Seeks To Appeal Warehouse Decision

Commerce Commission Seeks To Appeal Warehouse Decision

The Commerce Commission is seeking leave to appeal the High Court's decision which cleared the way for the three Foodstuffs co-operatives or Woolworths Ltd to acquire up to 100% shares in, or assets of, The Warehouse Group Ltd.

Last month the High Court, on appeal by Foodstuffs and Woolworths, overturned the Commission's decision to decline clearance for either potential acquisition.

Commission Chair Paula Rebstock said, "Appealing the judgment is important given the precedent it sets for the application of competition law in New Zealand, and the implications this has for the long term interests of supermarket consumers."

The appeal will raise questions of law, including the application of competition law to mergers and acquisitions, and the impact of the proposed acquisitions on competition in the large supermarket markets.

The Commission remains concerned about competition in the supermarket sector where a duopoly exists, in effect, except in the three regions where the Warehouse has opened an Extra supercentre.

The Commission is seeking to have the matter dealt with urgently. It is today filing an application for leave to appeal the High Court judgment, and is also seeking a stay of execution of the judgment pending the determination of any appeals.

There will be no further comment at this stage.

Background

The Commission declined clearance for either the three Foodstuffs co-operatives or Woolworths Ltd to acquire up to 100% shares in, or assets of, The Warehouse Group Ltd because New Zealand's supermarket retail market is already highly concentrated. There are high barriers to entry in the industry, and the Commission considers that the Warehouse is uniquely placed to compete with the supermarkets because of its existing property portfolio, extensive distribution networks and established brand.

Commission media releases can be viewed at www.comcom.govt.nz

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