The Commerce Commission has granted clearance to Tuakau Proteins Limited to acquire the Tuakau rendering and trucking businesses and the Hawera rendering plant and equipment owned by Graeme Lowe Protein Limited (Lowe).

The Commission considered the competition effects of the transactions in markets for both the supply of toll rendering and the collection and purchase of poultry, beef and mixed species raw material, mainly in the lower North Island. It also considered the effects on the supply of rendered outputs in New Zealand. 

The Commission is satisfied that the acquisitions will not have, or would not be likely to have, the effect of substantially lessening competition in the affected markets.

“We found that processors in the catchment areas of the Hawera and Tuakau plants will have alternative options available to them if the proposed acquisitions occur,” said Commerce Commission Chairman Dr Mark Berry.

“And the merger is unlikely to result in a reduction in the quantity of renderable material produced,” added Dr Berry.

Background

The transactions connect three North Island renderers. Tuakau Proteins will be jointly owned by Lowe (50.1%) and Glenninburg Holdings Limited (49.9%).

Lowe is ultimately owned by Lowe Corporation Limited, a family-owned company that has interests in rendering, tanneries and fellmongery plants, as well as farming operations, property development and investments. It also owns a 17% interest in Blue Sky Meats (N.Z.) Limited.

Glenninburg Holdings will be 82% owned by Taranaki By-Products Limited (TBP) and 18% owned by Mr Stephen Dahlenburg. Mr Dahlenburg owns 50% of Kakariki Proteins Limited (Kakariki), another rendering business located in the Manawatu.

TBP is also family owned. The majority shareholder is Glenn Raymond Smith.

TBP and Lowe Corporation Limited jointly own Hawkes Bay Protein Limited (HBP), another rendering business that processes ovine and cervine material. HBP is 50.1% owned by TBP and 49.9% owned by Lowe Corporation Limited.