Clearance Application From Marstel Terminals

Issued 23 May 2002

Commerce Commission Receives Clearance Application
From Marstel Terminals

The Commerce Commission has received an application from Marstel Terminals Pty Limited (Marstel), and any of its interconnected corporate bodies, to acquire 100% of the shares of Bulk Storage Terminals Limited (BST).

Marstel and BST are both providers of bulk liquid storage and handling facilities in New Zealand and Australia.

Marstel is an independent privately owned company that specialises in bulk storage and handling of hazardous liquids for third parties.

BST is a wholly owned subsidiary of Burns, Philp & Company Limited, and specialises in port-side bulk storage and handling of tallow and vegetable oils (both food grade and non food grade). It also provides storage of some hazardous chemicals.

Both businesses have facilities in Auckland and Wellington that are able to store certain chemicals, such as caustic soda. BST also has facilities in other parts of New Zealand.

In considering the application, the Commission’s role is to determine whether the merger has the effect of substantially lessening competition in a market.

A public version of Marstel’s application is available on request from the Commerce Commission. Please contact Catherine Best, (04) 924 3654.
Background
In 1996, the Commerce Commission declined to clear Gardner Smith NZ Ltd to acquire the assets of BST.

Gardner Smith processes, stores and distributes tallow and vegetable oils. It also provides, through subsidiaries, non-hazardous liquid bulk storage services at Auckland, Napier, Picton and Bluff.

The Commission was not satisfied that the proposal would not result, or would not be likely to result, in the combined entity (Gardner Smith and BST) acquiring a dominant position in the Auckland regional market for the bulk storage of non-hazardous liquids which includes the bulk storage of tallow and vegetable oils.

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