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.


© Scoop Media

Business Headlines | Sci-Tech Headlines


Postnatal Depression: 'The Thief That Steals Motherhood' - Alison McCulloch

Post-natal depression is a sly and cruel illness, described by one expert as ‘the thief that steals motherhood’, it creeps up on its victims, hiding behind the stress and exhaustion of being a new parent, catching many women unaware and unprepared. More>>


DIY: Kiwi Ingenuity And Masking Tape Saves Chick

Kiwi ingenuity and masking tape has saved a Kiwi chick after its egg was badly damaged endangering the chick's life. The egg was delivered to Kiwi Encounter at Rainbow Springs in Rotorua 14 days ago by a DOC worker with a large hole in its shell and against all odds has just successfully hatched. More>>


Trade: Key To Lead Mission To India; ASEAN FTA Review Announced

Prime Minister John Key will lead a trade delegation to India next week, saying the pursuit of a free trade agreement with the protectionist giant is "the primary reason we're going" but playing down the likelihood of early progress. More>>



MYOB: Digital Signatures Go Live

From today, Inland Revenue will begin accepting “digital signatures”, saving businesses and their accountants a huge amount of administration time and further reducing the need for pen and paper in the workplace. More>>

Oil Searches: Norway's Statoil Quits Reinga Basin

Statoil, the Norwegian state-owned oil company, has given up oil and gas exploration in Northland's Reinga Basin, saying the probably of a find was 'too low'. More>>


Modern Living: Auckland Development Blowouts Reminiscent Of Run Up To GFC

The collapse of property developments in Auckland is "almost groundhog day" to the run-up of the global financial crisis in 2007/2008 as banks refuse to fund projects due to blowouts in construction and labour costs, says John Kensington, the author of KPMG's Financial Institutions Performance Survey. More>>


Health: New Zealand's First ‘No Sugary Drinks’ Logo Unveiled

New Zealand’s first “no sugary drinks logo” has been unveiled at an event in Wellington... It will empower communities around New Zealand to lift their health and wellbeing and send a clear message about the damage caused by too much sugar in our diets. More>>


Get More From Scoop

Search Scoop  
Powered by Vodafone
NZ independent news