Statement of Preliminary Issues released for Pact/Flight clearance application
Published04 Sep 2020
The Commerce Commission has published a statement of preliminary issues relating to an application from Pact Group Holdings Limited (Pact) to acquire the assets and business of Flight Plastics Limited in New Zealand and the packaging-related assets of Flight Extruded Plastics LP in Adelaide (together, Flight).
The statement outlines the key competition issues that the Commission considers important in deciding whether or not to grant clearance to the proposed acquisition.
The Commission invites interested parties to provide comments on the likely competitive effects of the proposed acquisition. Submissions can be sent by email to email@example.com with the reference Pact/Flight in the subject line. Parties should provide a public version of their submission at the same time for publication on the Commission’s case register. Any submissions should be received by close of business on 18 September 2020.
The Commission is currently scheduled to make a decision on the application by 20 October 2020. However, this date may be extended.
The Statement of Preliminary Issues and a public version of the application can be found on the Commission’s case register.
Pact is a global packaging solutions business. Its primary focus is the manufacture and supply of rigid plastic packaging for customers in the food, beverage, chemical, industrial and agricultural sectors. In New Zealand, Pact manufactures and supplies plastic packaging products for a range of customers.
Flight is a manufacturer of plastics sheets and packaging in Australia and New Zealand. Flight manufactures plastic packaging in Wellington and Adelaide, including for fruit and produce, bakery, meat and seafood, and nursery and horticulture. Its Wellington plant can process waste plastic collected locally and turn it back into food-grade plastic packaging.
In New Zealand the two firms compete to supply rigid plastic packaging.
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
Further information explaining how the Commission assesses a merger application is available on our website.