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

 

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Auckland Outage: Power Mostly Restored Overnight

Vector wishes to advise that all but 324 customers have been restored overnight. These customers are spread throughout the network in small pockets. The main St Johns feeder was restored around midnight allowing most of the customers in all affected areas to have power this morning. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
More RSS  RSS
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news