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

 

Auckland Surge, Possible Peak: House Values Accelerate At Fastest Annual Pace In 8 Years

New Zealand residential property values rose at their fastest annual pace in eight years in August, pushed higher by overflowing demand in Auckland, which is showing signs speculators think it has reached its peak, according to Quotable Value. More>>

ALSO:

Cash Money: Reserve Bank Launches New $5 And $10 Banknotes

The $5 and $10 final banknotes were revealed at an event at the Bank in Wellington, and will start to be released from mid-October 2015. More>>

ALSO:

Truck Sales Booted: Commerce Commission Files Charges Against Mobile Trader

The Commerce Commission has filed charges against a mobile trader, or truck shop operator, claiming he obtained money from customers by deception and never intended to supply them with the goods they paid for. More>>

ALSO:

Planes: Jetstar Launches Regional Network

Jetstar, the Qantas Airways budget offshoot, launched its new regional network in New Zealand with special $9 one-way fares and has narrowed down its choices to five routes and four destinations - Nelson, Napier, New Plymouth, and Palmerston North. More>>

ALSO:

Fisheries: Report On Underrsize Snapper Catch

The report found that commercial fishers caught 144 tonnes of undersized snapper in the Snapper 1 area – about 3% of the total commercial catch – in the year ending February 2015. The area stretches from the top of the North Island to the Bay of Plenty and is one of New Zealand’s most important fisheries. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news