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

 

Investigation into Bondor’s acquisition of Long Group closed

Media Release

Issued 20 May 2019
Release No 145

Commission closes investigation into Bondor’s acquisition of the Long Group

The Commerce Commission has closed its investigation into Bondor New Zealand’s acquisition of the assets of Long Holdings Limited, the Insulation Panel & Door Co Limited and Long Panel Limited (together, the Long Group).

On 25 February 2019, the Commission opened an investigation of the acquisition under section 47 of the Commerce Act. The Commission was concerned that prior to the acquisition, Bondor and the Long Group were close competitors in the manufacture and supply of EPS panels. EPS panels are panels with an expanded polystyrene core which are used in the construction of controlled temperature industrial and commercial buildings.

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

The Commission considers the evidence it obtained during its investigation did not establish that the acquisition would be likely to result in a substantial lessening of competition. Accordingly, the Commission has decided to close its investigation and take no further action.

The reasons outlining the Commission’s decision will be published on our website shortly.

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.




© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Up 17.% In June Year: Fuel And Rent Drive Inflation

The consumers price index (CPI) rose 0.6 percent in the June 2019 quarter, due to higher prices for petrol and rent, Stats NZ said today. More>>

ALSO:

Services: Softer June Points To Economic Slowdown

Activity in New Zealand's services sector softened in June, adding to a picture of lacklustre economic growth. The BNZ-BusinessNZ performance of services index fell 0.8 of a point in June from May to a seasonally adjusted 52.7. More>>

ALSO:

Incomings: Migration Remains High

Annual net migration was provisionally estimated at 50,200 (± 800) in the year ended December 2018 compared with 52,600 in the previous year, Stats NZ said. More>>

ALSO:

BusinessDesk: ComCom Files High Court Proceedings Against Westpac

The commission alleges the bank breached the Credit Contracts and Consumer Finance Act 2003 by failing to provide key information it was required to give customers under the law. More>>