Investigation Opened Into Acquisition Of Wallace's North Island Rendering Assets
The Commerce Commission has opened an investigation into the acquisition of the North Island animal rendering assets of Wallace Group GP Limited (Wallace) by interests associated with Glenninburg Holdings Limited (Glenninburg).
The Commission will consider whether the acquisition is likely to have substantially lessened competition in any relevant market in breach of section 47 of the Commerce Act. The Commission did not receive an application for clearance for the acquisition, which was completed on or about 8 June 2020.
Glenninburg and Wallace both have interests in companies that render animal materials into finished products such as meat and bone meal and tallow. The investigation will focus on the competition lost as a result of the acquisition, and the constraints on the merged entity’s ability to raise prices or lower the quality of its services. The investigation will also examine what would likely have happened to Wallace’s North Island animal rendering assets in the absence of the acquisition.
The Commission invites parties who
consider they hold relevant information to contact the
Commission by email to email@example.com
with the reference Glenninburg/Wallace in the subject line
no later than 4pm on 9 September
Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. The Commission administers a voluntary notification regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an investigation into a proposed or completed acquisition under section 47. If a person breaches section 47 they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.