The Commerce Commission today cleared the Tiong Group's subsidiary Karamea Holdings to acquire 100 percent of the shares in Salmond Smith Biolab (SSB).

The Tiong Group, through its New Zealand subsidiaries, currently has about an 8.5 percent shareholding in SSB.

Commission Deputy Chairman Peter Allport said the Commerce Act prohibits business acquisitions which lead to dominance being gained or strengthened in any markets.

"We are satisfied that the proposed acquisition by Karamea Holdings would not result, in anyone gaining or strengthening market dominance," Mr Allport said.

The acquisition would result in the effective aggregation of the salmon production, processing and distribution operations of SSB and Regal Salmon. The Tiong Group has an interest in Regal Salmon.

The Commission concluded that the Tiong Group would still be constrained in the domestic market by competition from other salmon producers as well as the threat of imports.

"We consider that the domestic consumption of salmon can be supplied by alternative local producers and New Zealand can now import Canadian salmon," Mr Allport said.

Media Contact: John Preston, Chief Investigator, Business Acquisitions

Phone: work (04) 498 0933

home (04) 479 2914