The Commerce Commission has published a statement of preliminary issues relating to an application from VPRS Limited and Visy Industries Australia Pty Limited (together Visy) seeking clearance to acquire certain businesses and assets of HP Industries Holding Limited and HP Industries (New Zealand) Limited (together HP).
At present, Visy and HP both supply PET beverage bottles in the North Island. HP also currently supplies a range of plastic containers and closures.
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 the application are on the Commission’s website at: www.comcom.govt.nz/clearances-register
The Commission invites submissions from parties who consider that they have information relevant to the Commission’s consideration of this matter. Submissions can be sent to email@example.com with the reference Visy/HP in the subject line of your email or to PO Box 2351, Wellington 6140 by 4pm on Friday 2 March 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 for download at www.comcom.govt.nz/mergers-and-acquisitions-merger-assessment-fact-sheet