Commission declines application

21 December 2005/079

Commission declines application from Energy Market Services for clearance

The Commerce Commission has declined to grant clearance for Energy Market Services Limited (EMS) to acquire all of the shares of The Marketplace Company (M-co).

Chair Paula Rebstock said that the Commission was not satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in the relevant markets.

EMS is a wholly-owned subsidiary of Transpower New Zealand Limited, the operator of the New Zealand electricity system. It was established by Transpower in 1998 and known at that time as d-Cypha Limited. In 2004 it changed its name to Energy Market Services Limited. EMS's main activity is the role of Reconciliation Manager at the wholesale level of the electricity industry. EMS also provides data information services to various participants in the electricity industry.

M-co is a wholly-owned subsidiary of M-co International Limited and is ultimately owned by the FirstRand Group, a South-African based international financial group. M-co provides a range of services to industry participants, mostly in the electricity industry. These include market support and administration services to the Electricity Commission, market information services and consultancy services to industry participants.

A public version of the Commission's decision will be released in the New Year on the Commission's website.

ENDS

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