Commission clears Tranzrich to acquire some Guthreys assets
Published10 Apr 1997
The Commerce Commission today cleared Tranzrich Travel Ltd to acquire the assets of the Intercity business of Guthreys Intercity Coach Services Ltd.
Commission Deputy Chairman Peter Allport said that the Commission was satisfied that, should the acquisition go ahead, Tranzrich would not acquire or strengthen a dominant position in any market.
The proposal is for Tranzrich to acquire the Intercity franchise held by Guthreys, the coaches and related assets used to operate the franchise and Guthreys 18.03 percent shareholding in Intercity Management Ltd.
The proposal does not include the other assets of Guthreys, in particular its chartered coach and tour operation.
Mr Allport said the Commission concluded that the relevant markets were scheduled long distance coach services on the following routes:
· Hamilton - Auckland
· Auckland - Rotorua
· Hamilton - Tauranga
· Hamilton - Rotorua.
In addition to coach operators on these routes, Tranzrich faces competition from rail, shuttle buses and rental cars, and to a limited extent from airlines. There is also some potential for new entry.
The combination of these factors will constrain Tranzrich and prevent it acquiring dominance in any market.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened. Parties can apply to the Commission for a clearance which will be granted if the Commission is satisfied that dominance is not acquired or strengthened.
