Atlas Copco granted clearance to acquire Ash Air business

Atlas Copco granted clearance to acquire the Ash Air businesses

The Commission has granted clearance to Atlas Copco South Pacific Holdings Pty Limited (Atlas Copco) to acquire the businesses operated by four Lancaster Group Limited subsidiary companies: Ash Air (N.Z) Limited, Ash Air Oil & Gas Limited, mbar 2011 Limited, and Fox Air NZ Limited (together, the Ash Air businesses).

In New Zealand, both Atlas Copco and the Ash Air businesses import and distribute a range of equipment including air compressors, vacuum pumps and blowers, as well as providing the necessary repair and maintenance services.

The Commission is satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the affected distribution and servicing markets for air compressors, vacuum pumps and blowers.

The Commission focused its investigation on air compressors because this is where Atlas Copco and the Ash Air businesses are each other’s closest competitors. “We consider that in the air compressor markets, the merged firm would face competition from existing suppliers, who have the ability to expand. There is also a real chance of new entry from international manufacturers,” said Commerce Commission Chairman Dr Mark Berry.

“In the vacuum pump and blower markets, there would be limited overlap between Atlas Copco and the Ash Air businesses and the merged firm would continue to face strong competition from a number of existing suppliers,” Dr Berry added.

A public version of the written reasons for the decision will be available shortly on the Commission’s website:http://www.comcom.govt.nz/business-competition/mergers-and-acquisitions/clearances/clearances-register/

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