The Commerce Commission has agreed to a request from the dairy "mega-merger" establishment board to delay its investigation of the mega-merger, which proposes to merge the Dairy Board and up to eight dairy companies.

Commission Acting Chairman Mark Berry said that the establishment board has told the Commission that it hopes to provide answers to the Commission's 48 questions in the form of a new application for authorisation by early November.

Mr Berry said that interested parties should not make submissions on the Commission's draft determination issued on Friday last week. The conference scheduled for October 5-8 has been cancelled.

The Commission will issue its new timetable after the new application is made.

To give an approximation of a new timetable, Mr Berry said that if the new application is made by the end of October, the Commission anticipates that it would issue a new draft determination before Christmas. Submissions on the draft determination and a conference would be in January/February next year.

A final decision, drawing together information from the new draft determination, submissions and the conference would follow several weeks later.

"To a large extent, timing is now up to the establishment board. The sooner it develops a new proposal, the sooner the Commission can resume its investigation."

Background

The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets. Parties to an otherwise prohibited acquisition can apply for an authorisation. The Commission will grant an authorisation if it is satisfied that public benefits from the proposal outweigh the detriments from loss of competition.

Media contact:

Commerce Act Manager Geoff Thorn

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz