Commerce Commission Clears Holcim To Acquire Atlas

Media Release

Issued 21 November 2003-04 / 066

Commerce Commission clears Holcim to acquire Atlas

The Commerce Commission has cleared Holcim (New Zealand) Limited to acquire a minority shareholding interest in Atlas Resources Limited from W M and E A Collie.

Acting Chair Paula Rebstock said the Commission had considered the nature and extent of the contemplated lessening in the relevant markets.

"The Commission is satisfied that the proposed acquisition would not have, nor would be likely to have, the effect of substantially lessening competition in the market for the wholesale supply of cement in New Zealand and the Auckland markets for the manufacture and supply of ready-mixed concrete and aggregates and the extraction and supply of sand."

"Post acquisition there will be existing competitors remaining in the ready-mixed market so that competition is unlikely to be substantially lessened. In the aggregate and sand markets the merged entity will obtain a market share which falls within the Commission's safe harbour guidelines," said Ms Rebstock.

Holcim is owned by Swiss-based Holcim Limited and is involved in the production and distribution of cement which is marketed nationally. Holcim operates two quarries in the Auckland region, and through its subsidiary Coastal Resources Limited operates a sand winning and dredging operation from the coast north east of Auckland City.

Atlas operates five ready-mixed concrete plants in Auckland and one in Northland. Through its subsidiary Mt Rex Shipping, Atlas is also involved in the extraction and distribution of sand and aggregates to the Auckland and Northland regional markets.

A public version of the Commission's decision will be shortly available on the Commission's website under Adjudication.

ENDS

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