The Commerce Commission has opened an investigation into Wilson Parking New Zealand Limited’s acquisition of Tournament Parking Limited’s parking assets. The Commission will consider whether the acquisition is likely to have resulted in a substantial lessening competition in any relevant market.

Both Wilson Parking New Zealand Limited and Tournament Parking Limited each own a number of car parking operations throughout the country.

The Commission invites submissions from parties who consider they have relevant information for the Commission’s consideration.

Submissions can be sent to registrar@comcom.govt.nz with the reference Wilson/Tournament in the subject line of the email, or to PO Box 2351, Wellington 6140 by 4pm Friday 28 June 2013.

Background

Mergers that substantially lessen competition in a market are illegal under the Commerce Act 1986.

If a business is concerned that its proposed merger with a competitor might be viewed as anti-competitive, it can seek the Commission’s approval for the merger to proceed. This is known as a clearance.

The clearance regime is voluntary. However, if the Commission becomes aware of a business acquisition which does not have the immunity of a clearance and which may be likely to substantially lessen competition in a market, it may investigate the transaction. If there is no likely substantial lessening of competition as a result of the merger, there is no problem. However, if the Commission has concerns that a substantial lessening of competition is likely, we can take enforcement action under the Commerce Act 1986. This can result in significant penalties and the court may order the merger to be reversed.

A fact sheet explaining how the Commission assesses mergers and acquisitions is available at www.comcom.govt.nz/merger-assessment/