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

 


Oji cleared to acquire Carter Holt Harvey Pulp & Paper

Oji cleared to acquire Carter Holt Harvey Pulp & Paper


The Commission has given clearance for Oji Oceania Management (NZ) Limited (Oji) to acquire up to 100% of the shares in Carter Holt Harvey Pulp & Paper Limited from Carter Holt Harvey Limited.

Through its ownership links with Pan Pac Forest Products Limited, Oji owns forests, a saw mill and a pulp mill in Hawke’s Bay. As a result of the acquisition, Oji will own Carter Holt Harvey’s pulp and paper business which includes the Kinleith pulp and paper mill, and the Tasman pulp mill in the central North Island.

“The Commission is satisfied that the merger will not have, or would not be likely to have the effect of substantially lessening competition in any of the affected markets,” said Commerce Commission Chairman Dr Mark Berry.

“Oji’s mechanical pulp mill and Carter Holt Harvey’s kraft pulp mills produce different types of pulp so the merger is unlikely to result in any change to the competitive situation in respect of the supply of pulp,” said Dr Berry.

The Commission also considered the impact of the merger on the markets in which Oji and Carter Holt Harvey buy pulp logs and wood chips; the principal inputs used in their pulp mills.

The Commission identified that some pulp log and wood chip suppliers that currently supply Oji or Carter Holt Harvey could lose a competing buyer as a result of the merger. The Commission therefore considered whether Oji would be able to depress the prices it pays to those suppliers to such an extent that the suppliers might reduce the quantity of pulp logs that they produce.

”However, the Commission considers that as pulp logs are a by-product of saw logs, the quantity of pulp logs produced is driven largely by the price of saw logs. As such, the merger is unlikely to result in any reduction in the quantity of pulp logs produced,” said Dr Berry.

“While the removal of a potential competing buyer for wood chips may lead to a decrease in the prices Oji pays affected suppliers, it is unlikely to lead to a reduction in wood chip output because Oji requires the chips from all of its suppliers to enable its pulp mill to run at capacity,” added Dr Berry.

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

ends

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Catches Breath After "Goldilocks" Slump

The New Zealand dollar edged up following its dramatic slump yesterday after the Reserve Bank confirmed speculation it intervened in the currency market last month and PM John Key suggested a “Goldilocks” level far lower than at present. More>>

ALSO:

Biosecurity: Kiwifruit Claim To Hold Officials Accountable For Psa

Kiwifruit growers have joined forces to hold Biosecurity NZ accountable in the courts for its negligence in allowing 2010’s Psa outbreak that devastated New Zealand’s kiwifruit industry and exports. Foundation claimants representing well ... More>>

ALSO:

Poison: Anglers Advised Not To Eat Trout In 1080 Areas

With the fishing season opening in just a few days (1 October 2014), anglers are being warned by the Department of Conservation(DOC) not to eat trout from pristine backcountry waters and their downstream catchments, where the department is conducting 1080 poisoning operations. More>>.

ALSO:

Quotas: MPI Swoop On Suspected Fraudulent Fishing Activity

Ministry for Primary Industries (MPI) compliance officers swooped on a Hawkes Bay fishing enterprise today to secure evidence in an investigation into suspected fraudulent activity... “The investigation involves activity throughout the commercial supply chain – catching, landing, processing and exporting.” More>>

ALSO:

Scoop Business: Fonterra Slashes 2015 Milk Payout, Earnings Tumble 76%

Fonterra Cooperative Group cut its forecast 2015 milk price payout by about 12 percent, citing weaker global dairy prices and said there is a risk of further declines given strong global milk production. More>>

ALSO:

Scoop Business: RBNZ Keeps OCR At 3.5%, Signals Slower Pace Of Future Hikes

Reserve Bank governor Graeme Wheeler kept the official cash rate at 3.5 percent and signalled he won’t be as aggressive with future rate hikes as previously thought as inflation remains tamer than expected. The kiwi dollar fell to a seven-month low. More>>

ALSO:

Weather: Dry Spells Take Hold In South Island

Many areas in the South Island are tracking towards record dry spells as relatively warm, dry weather that began in mid-August continues... for some South Island places, the current period of fine weather is quite rare. More>>

ALSO:

Get More From Scoop

 
 
Computer Power Plus

Standards New Zealand

Standards New Zealand

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