The Commerce Commission has published a statement of preliminary issues relating to an application from Fonterra seeking clearance to acquire the dairy processing assets of New Zealand Dairies Limited.
The statement of preliminary issues outlines the key competition issues that the Commission currently considers will be important in deciding whether or not to grant clearance. The Commission’s statement of preliminary issues and the public version of Fonterra’s application are available on the Commission’s website at: www.comcom.govt.nz/clearances-register
The Commission invites submission from parties who consider they have information relevant to the Commission’s consideration of the matter.
Submissions can be sent to email@example.com with the reference Fonterra/NZDL in the subject line of the email or to PO Box 2351, Wellington 6140 by 4pm Friday 20 July 2012.
Assessing an application for a merger or acquisition
When considering a proposed merger, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
A fact sheet explaining how the Commission assesses a merger application is available at www.comcom.govt.nz/merger-assessment