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

 

Commission closes investigation

6 May 2019
Release No. 143

Commission closes investigation into David Ferrier’s acquisition of stake in Cavalier


The Commerce Commission has closed its investigation into David Ferrier’s acquisition of a 70% equity interest in Cavalier Wool Holdings Limited as its concerns with the transaction have been addressed.

In October last year the Commission opened an investigation of the acquisition under section 47 of the Commerce Act. The Commission was concerned that the acquisition by the owner of New Zealand’s only wool dumping operation, New Zealand Wool Dumping Limited (NZWD), of the majority shareholding of New Zealand’s only scouring business, Cavalier Wool Holdings, might enable him to raise prices or lower the quality of either of those services.

Mr Ferrier had not sought clearance for the acquisition under the Commission’s merger regime.

Since the Commission opened its investigation, Mr Ferrier has sold down his majority interest in NZWD. The Commission considers this action has resolved its competition concerns.

The reasons outlining the Commission’s decision have been published on its website.

Background

Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. The Commission administers a voluntary regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an investigation into a proposed or completed merger under Section 47. If a person breaches Section 47 they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.


ends

© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Up 0.5% In June Quarter: Services Lead GDP Growth

“Service industries, which represent about two-thirds of the economy, were the main contributor to GDP growth in the quarter, rising 0.7 percent off the back of a subdued result in the March 2019 quarter.” More>>

ALSO:

Pickers: Letter To Immigration Minister From Early Harvesting Growers

A group of horticultural growers are frustrated by many months of inaction by the Minister who has failed to announce additional immigrant workers from overseas will be allowed into New Zealand to assist with harvesting early stage crops such as asparagus and strawberries. More>>

ALSO:

Non-Giant Fossil Disoveries: Scientists Discover One Of World’s Oldest Bird Species

At 62 million-years-old, the newly-discovered Protodontopteryx ruthae, is one of the oldest named bird species in the world. It lived in New Zealand soon after the dinosaurs died out. More>>

Rural Employers Keen, Migrants Iffy: Employment Visa Changes Announced

“We are committed to ensuring that businesses are able to get the workers they need to fill critical skills shortages, while encouraging employers and regions to work together on long term workforce planning including supporting New Zealanders with the training they need to fill the gaps,” says Iain Lees-Galloway. More>>

ALSO:

Marsden Pipeline Rupture: Report Calls For Supply Improvements, Backs Digger Blame

The report makes several recommendations on how the sector can better prevent, prepare for, respond to, and recover from an incident. In particular, we consider it essential that government and industry work together to put in place and regularly practise sector-wide response plans, to improve the response to any future incident… More>>

ALSO: