Commission Grants Clearance For NZ Post To Acquire Certain Courier Business Assets Of PBT

The Commerce Commission has granted clearance for New Zealand Post Limited (NZ Post) to acquire PBT Group Limited’s (PBT) courier customer contracts.

In reaching its decision, the Commission focused on the potential impact of the proposed acquisition on competition in the supply of intercity economy courier services.

The Commission had expressed initial concerns that the proposed acquisition would remove a disruptive competitor for intercity economy courier services. However, after further investigation, Chair Dr John Small said the Commission was satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market.

Central to the Commission’s decision was its assessment of the competitiveness of PBT absent the proposed acquisition.

“Our investigation indicated that, absent the proposed acquisition, it is unlikely that PBT would likely provide a significant disruptive influence on the supply of intercity economy courier services,” Dr Small said.

“Post acquisition, customers requiring intercity economy courier services would have options for courier providers such as Freightways, Aramex and Team Global Express, in addition to NZ Post, and the loss of PBT is unlikely to have a material impact on the price and/or the quality of intercity economy courier services,” Dr Small said.

A public version of the written reasons for the decision will be available on the Commission’s case register in due course.

Background

NZ Post is a state-owned enterprise that provides mail, courier and logistics services. NZ Post operates a domestic small parcel courier business and it is the largest provider of such services in New Zealand.

PBT provides freight, courier and logistics services throughout New Zealand. PBT provides intercity courier services primarily to business customers in urban areas of New Zealand. It contracts approximately 200 courier van owner-operators to deliver its services. The contracts with these owner-operators are not being acquired by NZ Post.

We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

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