Commission To Issue Statement Of Issues On Viridian’s Proposed Acquisition Of Metro Performance Glass

The Commerce Commission has decided to issue a Statement of Issues relating to the application from Viridian NZ Bidco Limited seeking clearance to acquire up to 100% of the shares in Metro Performance Glass Limited by way of a takeover offer under the Takeovers Code or scheme of arrangement under Part 15 of the Companies Act 1993.

The Statement of Issues will be published on the Commission’s case register in due course, and will outline the potential competition issues with the acquisition following the Commission’s initial investigation. The Statement of Issues will invite submissions from Viridian, Metro and any other interested parties.

The Commission has identified potential adverse competitive effects arising from a loss of competition between Viridian and Metro in glass processing, supply and installation markets where they are close competitors. These effects could include price rises, or reductions in product or service quality (including delivery timeframes). The specific markets in which these competitive effects appear to be most likely are the customer or geographic markets where there are limited supply alternatives to Viridian and Metro, and/or where a merged Viridian and Metro would not face a sufficient degree of competitive constraint. While we are continuing to investigate, those markets are likely to at least include those for the supply of glass to window and door fabricators and, separately, to glass merchants and glaziers.

The Statement of Issues is not a final decision and does not mean that the Commission intends to decline or clear the merger.

Background

Viridian and Metro are involved in the processing and installation of glass across New Zealand, with plants in both Auckland and Christchurch.

We will only 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.

Further information explaining how the Commission assesses a merger application is available on our website.

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