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

 

R18: The Warehouse Group Praised For Removing Games

The decision by New Zealand’s largest retailer The Warehouse Group (TW Group), to withdraw stocks of the latest version of Grand Theft Auto V (GTA V) and other R18 games, has been praised by advocacy group Stop Demand Foundation. More>>

ALSO:

Air NZ Wine Awards: Victory For Villa Maria As Pinot Noir Thrills

It was a night to remember as Villa Maria Estate picked up one of the highest accolades of the evening, the O-I New Zealand Reserve Wine of the Show Trophy, at the 28th Air New Zealand Wine Awards. The Villa Maria Single Vineyard Southern Clays Marlborough ... More>>

ALSO:

Future Brighter Money: RBNZ Releases New Bank Note Designs

New Zealand’s banknotes are getting brighter and better, with the Reserve Bank today unveiling more vibrant and secure banknote designs which will progressively enter circulation later next year. More>>

ALSO:

Commerce: Supermarket Inquiry Finds No Breaches By Countdown

The Commerce Commission inquiry into anti-competitive behaviour by Countdown supermarkets, alleged by former Labour Party MP Shane Jones, has found nothing to warrant prosecution, although it warns supermarkets to take care in the way they communicate... More>>

ALSO:

Crown Accounts: English Flags ‘Challenge’ To Budget Surplus

Finance Minister Bill English is warning next month’s half yearly fiscal and economic update from the Treasury may not forecast a budget surplus, saying that returning the government’s accounts to surplus in 2015 will be “a challenge”, given the decline in commodity prices and weak global inflation. More>>

ALSO:

March 2015: Netflix To Launch In Australia And New Zealand

World’s Leading Internet Television Network to Offer Original Series, Movies, Documentaries, Stand-Up Comedy Specials and TV Shows for Low Monthly Price More>>

ALSO:

Price Of Cheese (Is Up): Dairy Product Prices Fall To Five-Year Low

Dairy product prices fell in the latest GlobalDairyTrade auction to the lowest level in more than five years, led by declines in rennet casein and skim milk powder. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news