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

 


Oji Holdings cleared to acquire CHH Pulp & Paper

Oji Holdings cleared to acquire CHH Pulp & Paper

Aug. 1 (BusinessDesk) - Japan's Oji Holdings Corp has been granted antitrust approval to acquire Carter Holt Harvey’s pulp, paper and packaging businesses from billionaire Graeme Hart.

The $1.04 billion deal will be one of the largest single Japanese investments in the New Zealand economy. Tokyo Stock Exchange-listed packaging giant Oji will take a 60 percent share of CHH’s PPP assets, comprising some of New Zealand’s largest industrial energy and forest products users, the Tasman and Kinleith pulp and paper mills, and a large Australasian packaging enterprise. Oji already owns the Pan Pac pulp and paper mill, near Napier.

Innovation Network Corp of Japan, a government-backed innovation agency that attracts private sector investment to “promote innovation and enhance the value of businesses in Japan”, makes up the remaining 40 percent joint venture vehicle that will make the investment. Oji and Innovation will own the assets through a holding company.

The deal needed Commerce Commission approval because Oji also owns forests, a saw mill and a pulp mill in Hawke's Bay via Pan Pac Forest Products.

“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 commissions chairman Mark Berry.

The regulator said it also considered the impact of the deal on markets in which Oji and Carter Holt Harvey buy pulp logs and wood chips for their pulp mills and said some suppliers "could lose a competing buyer as a result of the merger," raising the prospect Oji could then depress the price it pays.

”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," Berry said. “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."

CHH is 100 percent-owned by Hart, who in turn owns the world’s largest packaging business, US-based Reynolds Group.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Scoop Business: NZ Dollar Falls To 3-Year Low As Investors Favour Greenback

The New Zealand dollar fell to its lowest in more than three years as investors sold euro and bought US dollars, weakening other currencies against the greenback. More>>

ALSO:

Scoop Business: NZ Govt Operating Deficit Smaller Than Expected

The New Zealand’s government’s operating deficit was smaller than expected in the first five months of the financial year as a clampdown on expenditure managed to offset a shortfall in the tax-take from last month’s forecast. More>>

ALSO:

0.8 Percent Annually:
NZ Inflation Falls Below RBNZ's Target

New Zealand's annual pace of inflation slowed to below the Reserve Bank's target band in the final three months of the year, giving governor Graeme Wheeler more room to keep the benchmark interest rate lower for longer.More>>

ALSO:

NASA, NOAA: Find 2014 Warmest Year In Modern Record

Since 1880, Earth’s average surface temperature has warmed by about 1.4 degrees Fahrenheit (0.8 degrees Celsius), a trend that is largely driven by the increase in carbon dioxide and other human emissions into the planet’s atmosphere. The majority of that warming has occurred in the past three decades. More>>

ALSO:

Scoop Business: New Zealand’s Reserve Bank Named Central Bank Of The Year

The Reserve Bank of New Zealand’s efforts to stifle house price inflation by using new policy tools has seen the institution named Central Bank of the year by Central Banking Publications, a publisher specialising in global central banking practice. More>>

ALSO:

Science Media Centre: Viral Science And Another 'Big Dry'?

"Potentially, if there is no significant rainfall for the next month or so, we could be heading into one of the worst nation-wide droughts we’ve seen for some time," warns NIWA principal climate scientist Dr Andrew Tait. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

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