Reasons for Transpacific Industries being cleared (with
divestments) to acquire parts of EnviroWaste
Services
The Commerce Commission has released its
reasons for granting clearance to Transpacific Industries to
acquire certain South Island solid waste collection
businesses of EnviroWaste Services. The clearance was given
providing Transpacific Industries divests back to
EnviroWaste:
the front-end-load (FEL) bin solid
waste collection businesses and assets in Nelson,
Christchurch, Timaru and Dunedin; and
the
privately contracted wheelie bin solid waste collection
business in Dunedin.
The Commission’s reasons for
granting the clearance include:
Divestment of
EnviroWaste’s FEL collection businesses in Nelson,
Christchurch, Timaru and Dunedin; and its Dunedin wheelie
bin collection business back to EnviroWaste will ensure that
existing competition remains to constrain
TPI.
Divestment of certain assets back to
EnviroWaste enables EnviroWaste to continue to compete in
the national customer market. By subcontracting a small
amount of additional collection services and re-entering
selected gantry collection markets, the Commission considers
that EnviroWaste will continue to be a competitive
constraint on TPI in the national customer
market.
The Commission considers that competition
from the existing and divested waste businesses, together
with that from potential entrants into the relevant markets,
will continue to constrain TPI sufficiently so that there
would not be a substantial lessening of competition to the
detriment of consumers.
Advertisement - scroll to continue reading
The reasons are available on
the Commission's website www.comcom.govt.nz under
PublicRegisters/mergersacquisitions-clearances. Click on the
Decision number in the right hand column. Background
On 31 October 2007 the Commission granted clearance
to Transpacific as it was satisfied that the proposed
acquisition (with divestment) would not have the effect, or
likely effect, of substantially lessening competition in the
local markets in Nelson, Blenheim, Christchurch, Timaru,
Oamaru and Dunedin for collection of solid waste in wheelie
bins, front-end-loaded (FEL) bins and gantry bins (skips).
The Commission was also satisfied that, with the
divestment, there would not likely be a substantial
lessening of competition in the national market for the
provision of waste management
services
If you're using Scoop for work, your organisation needs to pay a small license fee with Scoop Pro. We think that's fair, because your organisation is benefiting from using our news resources. In return, we'll also give your team access to pro news tools and keep Scoop free for personal use, because public access to news is important!