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

 

Commission investigates purchase of Stevenson's unit

Commerce Commission investigates Fulton Hogan's purchase of Stevenson's unit

By Rebecca Howard

June 14 (BusinessDesk) - The Commerce Commission has opened an investigation to determine whether Fulton Hogan's proposed acquisition of Stevenson Group construction materials business will lessen competition in any relevant market.

Christchurch-based Fulton Hogan last month signed an agreement to buy the business in a deal that will see Fulton Hogan take full ownership of Stevenson’s quarries and concrete plants, transport, laboratory services and associated plant and equipment. The two companies said the terms of the deal were confidential and it's expected to settle by July 31.

At the time, neither company anticipated needing the commission's approval and today the regulator said they haven't applied for clearance.

According to the commission, if firms do not apply for clearance it can initiate an investigation under the Commerce Act. If a person is found to have beached the act they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.

The initial focus of the investigation will be on the potential competitive effects of the proposed acquisition on quarry markets in Auckland and North Waikato. It will also consider whether any competitive effects arise from Fulton Hogan’s proposed acquisition of Stevenson’s concrete plants, transport, laboratory services and associated plant and equipment, the commission said.

When the deal was announced Fulton Hogan chief executive Cos Bruyn said the acquisition complements the firm's vertical supply chain and gives it a long-term supply of quality aggregates to meet growing demand in Auckland and Waikato. For his part, Stevenson chief executive Mark Franklin told BusinessDesk the company has been a long-term owner of the construction materials, citing the Drury quarries as an example that has been part of the group since 1939, but that it's now probably "more valuable as part of someone else's supply chain".

(BusinessDesk)

ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Climate Summary: NZ’s Equal-2nd Warmest Year On Record

Annual temperatures were above average (+0.51°C to +1.20°C above the annual average) across the majority of New Zealand... 2018 was the equal 2nd-warmest year on record for New Zealand, based on NIWA’s seven-station series which began in 1909. More>>

ALSO:

GDP: Economic Growth Dampens In The September Quarter

Gross domestic product (GDP) rose 0.3 percent in the September 2018 quarter, down from 1.0 percent in the previous quarter, Stats NZ said today... GDP per capita was flat in the September 2018 quarter, following an increase of 0.5 percent in the June 2018 quarter. More>>

ALSO:

Up $1.20: $17.70 Minimum Wage For 2019

Coalition Government signals how it will move toward its goal of a $20 p/h minimum wage by 2021... “Today we are announcing that the minimum wage will increase to $17.70 an hour on 1 April 2019." More>>

ALSO:

Retail: IKEA To Open In New Zealand

Inter IKEA Systems B.V. is today announcing its intentions to grant the Ingka Group exclusive rights to explore expansion opportunities in New Zealand. More>>