Parliament

Gordon Campbell | Parliament TV | Parliament Today | Video | Questions Of the Day | Search

 

Commission Clears NPIL To Acquire Rayonier MDF

The Commerce Commission today cleared Nelson Pine Industries Limited (NPIL) to acquire Rayonier MDF New Zealand, which is Rayonier's medium density fibreboard plant at Mataura.

MDF is a wood-based panel product made from wood fibre and resin. It is produced as sheets that are used for interior construction, predominantly kitchens, furniture and cabinetry.

Commission Chair John Belgrave said that the Commission was satisfied that, should the proposal go ahead, NPIL would not acquire or strengthen dominance in any market.

In this case the relevant markets were the:
* national market for the manufacture and supply of MDF
* Nelson/Marlborough market for the supply and acquisition of wood fibre, and
* Otago/Southland market for the supply and acquisition of wood fibre.

Mr Belgrave said that the Commission concluded that the merged entity would be constrained by buyers and existing competitors.

The buyers, who in this market are wholesale distributors and large manufacturers of kitchens and furniture, told the Commission that they are prepared to switch to different suppliers if prices or service quality changed.

The competitors, Fletcher Wood Panels Limited and Carter Holt Harvey's subsidiary Canterbury Timber Products Limited, have the ability to increase the amounts of MDF that they supply to the New Zealand market.

There is also some scope for importing MDF from Australia.

The Commission also concluded that the proposal is unlikely to have any effect on the two regional wood supply markets. NPIL acquires its wood fibre from forests in the Nelson/Marlborough region and Rayonier acquires its wood fibre in the Otago/Southland region. There would be no aggregation of market power in either market.

Public copies of the Commission's decision will be available soon.

Background

NPIL made its application before amendments to the Commerce Act took effect on May 26. At that time the Act prohibited business acquisitions that resulted in dominance being acquired or strengthened in any market. The amended Act prohibits business acquisitions that substantially lessen competition in any market.

The Commission must use the dominance test when it investigates applications made before May 26 and the substantial lessening test when it investigates applications made on or after May 26.

Ends


© Scoop Media

 
 
 
Parliament Headlines | Politics Headlines | Regional Headlines

Crowdsale And Crowdfunding Campaign: Help Create The Future Of Independent News

Two weeks to go! The Scoop 3.0 plan aims to create NZ’s first community-owned, distributed news and media intelligence ecosystem in 2019. We believe this ScoopPro media monetisation approach can be scaled and spread globally to support local and independent news efforts in regional New Zealand and around the world.

Scoop is an ecosystem, it would not exist without those who contribute to it, read it and rely on it for professional media purposes. Generous past support from this ecosystem has enabled us to come this far in developing our business model. Support our PledgeMe Campaign>>

 

14/11: Two Years’ Progress Since The Kaikoura Earthquake

Mayor John Leggett said it was a day for reflection, but also a time to recognise the work by many people to support progress towards recovery made across Marlborough since November 2016. More>>

ALSO:

Pike River: Mine Drift Re-Entry Plan To Proceed

“I’ve decided the Te Kāhui Whakamana Rua Tekau Mā Iwa - Pike River Recovery Agency, recommended course of action to enter the drift, using the existing access tunnel, is by far the safest option,” said Andrew Little. More>>

ALSO:

Appointments: New High Commissioner To Australia Announced

“Dame Annette King needs no introduction given her long running career as a parliamentarian where she has previously held a number senior Cabinet portfolios, including Justice, Police and Health. She also was Parliament’s longest serving female MP with 30 years’ service,” said Mr Peters. More>>

ALSO:

Two Years Since Kaikoura: Silvia Cartwright To Lead Inquiry Into EQC

“The inquiry will be the first of its kind under the Public Inquiries Act 2013 and will have all the powers of a Royal Commission, be independent of Government and make its report directly to the Governor-General. More>>

ALSO:

Gordon Campbell: On The Royal Commission Into Child Abuse

Obviously, it is good news that the coalition government has broadened the scope of its Royal Commission into the abuse of children, beyond its previous focus on children in state care. More>>

ALSO:

Cases Delayed: Court Staff Refuse To Handle Sentencing Papers

Dozens of court cases have reportedly been delayed, as court staff escalate industrial action at two Auckland courts by enforcing a ban on handling sentencing papers. More>>

ALSO:

Education: Primary Teachers Rolling Strikes

RNZ Report: More than 100,000 primary school students in Auckland will be home from school today as teachers and principals walk off the job for the second time this year. It's the start of a week of rolling one-day strikes around the country, after the collapse of contract negotiations last Thursday. More>>

ALSO:

"Process Was Sound": Inquiry Into Haumaha Appointment Released

The Inquiry’s purpose was to examine, identify, and report on the adequacy of the process that led to the appointment. It found the process was sound and no available relevant information was omitted. More>>

ALSO:

 
 
 
 
 

LATEST HEADLINES

  • PARLIAMENT
  • POLITICS
  • REGIONAL
 
 

InfoPages News Channels