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

 


NZ antitrust regulator clears Hirepool to buy Hirequip

NZ antitrust regulator gives thumbs up for Hirepool to buy Hirequip

By Paul McBeth

Feb. 21 (BusinessDesk) - The Commerce Commission has cleared rental equipment operator Hirepool to buy Hirequip out of receivership, saying the two operate in different sectors and are hindered by their rivals.

The regulator didn't find any significant overlap between Hirepool and Hirequip in the hire of heavy construction and earthworks equipment, and that a merged entity would be constrained by competition at a sub-regional level. The low barriers to entry also fed into the commission's consideration.

"The commission is satisfied that the proposed acquisition would be unlikely to substantially lessen competition in any of the relevant markets," chairman Mark Berry said in a statement.

Hirepool, which is three-quarters owned by Australian private equity firm Next Capital, requested the Commerce Commission clear its acquisition in October, saying the merger won't substantially cut competition as they largely operate in different areas.

A sale and purchase price agreement has yet to be negotiated, though Hirepool's takeover would have to satisfy Hirequip's secured creditor Westpac Banking Corp, which is owed $117.8 million. Hirequip's unsecured creditors are also owed $76.9 million, according to the first receiver's report.

Hirepool says the deal would give it a "meaningful presence in the high value heavy and building segments," an area it isn't really exposed to. Its existing customers are largely small and medium construction businesses which it targets with specialist equipment, it said.

The company pointed to the Christchurch earthquakes as a "catalyst for growth" and led to new entrants into the market and expansion by existing players.

Hirequip’s parent shareholding companies Pacific Equipment Solutions, PES Finance and Hire Equipment Group are the entities placed in receivership in July, and came just a month after boss Rob Nichols was quoted as saying the company could seek a listing on the NZX as earnings recovered.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Wool Exports Jump To The Highest In More Than A Decade

New Zealand wool exports jumped to their highest level in more than a decade in June, aided by a lower currency and strong demand from China, the nation’s largest market. More>>

ALSO:

Surreal Estate: Home Values Rise At Fastest Rate In Seven Years

The latest monthly QV House Price Index shows that nationwide residential property values for July have increased 10.1% over the past year which is the fastest annual rate since 2007... The Auckland market has increased 18.8% year on year. More>>

ALSO:

New Employment Laws: Talley’s AFFCO Workers To Strike

The decision comes after the Talley’s owned company walked away from mediation last week and applied to end bargaining under the government’s new employment laws - the first such application since the law came into effect. More>>

ALSO:

Private Action: Employer Pleads Guilty Over Forestry Death

The CTU has always known that the death of forestry worker Charles Finlay was due to the poor health and safety practices of his employer... "The CTU, with the support of Charles’s family, needed to take this ground breaking private prosecution." More>>

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news