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

 

Up 0.5%: GDP Growth Eases Slightly

Gross domestic product (GDP) rose 0.5 percent in the March 2018 quarter, Stats NZ said today. This followed a 0.6 percent increase in the December 2017 quarter. Growth in service industries more than offset a fall in construction activity. More>>

ALSO:

Baby Formula: Fonterra Satisfied With Beingmate's Response To Error

Fonterra Cooperative Group is satisfied Beingmate Baby & Child Food is taking the right steps to deal with a labelling issue after getting caught out in a widespread audit by Chinese regulatory authorities. More>>

ALSO:

Adjusted, A Deficit: Current Account Turns To Surplus

New Zealand's current-account turned to a surplus in the first quarter, bolstered by the services balance as tourism remained strong. More>>

ALSO:

Housing: Foreign Buyer Ban Gets Smoother Edges

Amendments to the government’s foreign buyer ban, if introduced, would give overseas investors more leeway to put money into New Zealand housing developments. More>>

ALSO:

Te Kuha: Govt Declines Application To Mine Conservation Land

An application to mine coal on public conservation land near Te Kuha in the Buller District has been declined, Minister of Conservation Eugenie Sage and Minister of Energy Resources Megan Woods announced today. More>>

ALSO: