Commission declines Shell Fletcher Energy sale

Commission declines to clear Shell to acquire Fletcher Challenge Energy
Media Release 2000/99

The Commerce Commission today declined to clear Shell Exploration Company BV to acquire Fletcher Challenge Energy (FCE).

Commission Chair John Belgrave said that the Commission was concerned about Shell acquiring or strengthening dominance in all three of the relevant markets. The Commission can only give a clearance if it is satisfied that a proposed acquisition would not, or would not be likely to, result in dominance being acquired or strengthened in any market.

The relevant markets are the:

current gas production market

market for gas production after 2009, and

market for production of liquified petroleum gas (LPG).

"In summary, the Commission is not satisfied that Shell would not acquire or strengthen dominance in the three relevant markets, and we cannot give a clearance," Mr Belgrave said.

Further details will be available when public copies of the Commission’s full decision are released early next week.

Media contact: Commerce Act Manager Geoff Thorn

Phone work (04) 498 0958, cellphone 021 661 104

Senior Advisor Communications Vincent Cholewa

Phone work (04) 498 0920

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