Investigation opened into Bondor’s acquisition of Long Group
Published25 Feb 2019
The Commerce Commission has opened an investigation into Bondor New Zealand Limited’s acquisition of the business and assets of Long Holdings Limited, The Insulation Panel & Door Co Limited and Long Panel Limited (together, the Long Group).
The Commission will consider whether the acquisition would be likely to substantially lessen competition in any relevant market in breach of section 47 of the Commerce Act. Bondor did not apply for clearance for the acquisition which occurred on 3 December 2018.
Bondor and Long are both suppliers of insulated panels for the construction of controlled temperature industrial and commercial buildings. The focus of the investigation will be on the extent of competition that is likely to be lost between Bondor and the Long Group as a result of the acquisition, and the extent to which the merged entity will likely be constrained from raising prices or lowering the quality of either its products or associated services.
The Commission invites parties who consider they hold relevant information to contact the Commission by email to email@example.com with the reference Bondor/Long in the subject line no later than 4pm Friday 8 March 2019.
Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. The Commission administers a voluntary notification regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an investigation into a proposed or completed acquisition under section 47. If a person breaches section 47 they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.