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

 


Commerce Commission clears Hirepool to purchase Hirequip

Commerce Commission clears Hirepool to purchase Hirequip

The Commerce Commission has cleared the owner of Hirepool, Bligh Finance Limited, to purchase Hire Equipment Group Limited (Hirequip).

In assessing the clearance application, the Commission looked at the potential impact of the purchase in both heavier and lighter equipment hire services markets. Firstly, a national market for heavy construction and earthworks equipment and, secondly, sub-regional markets for building construction and maintenance equipment.

The Commission assessed the extent to which Hirepool and Hirequip currently compete and whether the loss of that rivalry would lead to a substantial lessening of competition, the test under the Commerce Act.

Commerce Commission Chairman Dr Mark Berry said, “In reaching its decision, the Commission considered that, in the hire of building construction and maintenance equipment, the merged entity would be constrained in each sub-regional market by the presence of existing competitors, low barriers to entry and/or the countervailing power of large customers”.

The Commission did not find any significant business overlap between Hirepool and Hirequip in the hire of heavy construction and earthworks equipment.

“As a result, the Commission is satisfied that the proposed acquisition would be unlikely to substantially lessen competition in any of the relevant markets,” said Dr Berry.

A public version of the full written reasons for the decision is now available on the Commission‘s website at www.comcom.govt.nz/clearances-register

Background

Bligh Finance applied for clearance in October to acquire up to 100% of the shares and/or assets of Hirequip. Hirepool and Hirequip are rental businesses that primarily hire out general construction and building equipment. They also hire out other more specialist items including motor vehicles, marquee and event equipment, portable toilets, and portable buildings.

When considering a proposed merger, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available on the Commission’s website: www.comcom.govt.nz/merger-assessment/

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Half Full: Dairy Payouts Steady, Cash Will Be Tight

Industry body DairyNZ is advising farmers to focus on strong cashflow management as they look ahead to the 2015-16 season following Fonterra's half-year results announcement today. More>>

ALSO:

First Union: Cotton On Plans To Use “Tea Break” Law

“The Prime Minister reassured New Zealanders that ‘post the passing of this law, will you all of a sudden find thousands of workers who are denied having a tea break? The answer is absolutely not’... Cotton On is proposing to remove tea and meal breaks for workers in its safety sensitive distribution centre. How long before other major chains try and follow suit?” More>>

ALSO:

Scoop Business: NZ-Korea FTA Signed Amid Spying, Lost Sovereignty Claims

A long-awaited free trade agreement between New Zealand and South Korea has been signed in Seoul by Prime Minister John Key and the Korean president, Park Geun-hye. More>>

ALSO:

PM Visit: NZ And Viet Nam Agree Ambitious Trade Target

New Zealand and Viet Nam have agreed an ambitious target of doubling two-way goods and service trade to around $2.2 billion by 2020, Prime Minister John Key has announced. More>>

ALSO:

Scoop Business: NZ Economy Grows 0.8% In Fourth Quarter

The New Zealand economy expanded in the fourth quarter as tourists drove growth in retailing and accommodation, and property sales increased demand for real estate services. More>>

ALSO:

Scoop Business: RBNZ’s Wheeler Keeps OCR On Hold, No Rate Hikes Ahead

The Reserve Bank has removed the prospect of future interest rate hikes from its forecast horizon as a strong kiwi dollar and cheap oil hold down inflation, and the central bank ponders whether to lower its assessment of where “neutral” interest rates should be. The kiwi dollar gained. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news