The Commerce Commission has granted Vector Limited clearance to acquire up to 100 percent of the shares of NGC Holdings Limited.

Chair Paula Rebstock said the Commission was satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in any market.

The Commission has also granted Vector exemption from the application of sections 17 and 18 of the Electricity Industry Reform (EIR) Act in regard to its proposed acquisition of NGC. The EIR Act prohibits electricity lines businesses such as Vector from having involvements with electricity supply businesses. Vector required such an exemption because, in the terms of the Act, NGC is an electricity supply business. NGC owns:

  • a share of an electricity generator at the Kapuni gas treatment plant;
  • electricity price hedge contracts which in effect mean that NGC sells electricity; and
  • a share of Wanganui Gas Ltd which is an electricity retailer.

The exemption is subject to certain conditions.

Public versions of the Commission's decisions will shortly be available on the Commission's website www.comcom.govt.nz under the Clearances Register.