The Commerce Commission today cleared Bay of Plenty Co-operative Fertiliser Company Ltd (BOP) to acquire 100 percent of the shares of SouthFert Co-operative Ltd.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.
Commission member Terry Stapleton said that the Commission is satisfied that if the proposal went ahead, then BOP would not acquire or strengthen dominance in any market.
Mr Stapleton said that in investigating BOP's application, the Commission carefully re-considered information gathered in previous investigations and obtained further information specifically relevant to this proposal.
The Commission has previously cleared BOP Fertiliser Ltd to acquire 40 percent of SouthFert assets and has declined to authorise Ravensdown Corporation Ltd to acquire up to 100 percent of the shares of SouthFert. Ravensdown has appealed the latter decision.
The Commission confirmed its previous conclusions that the North Island and South Island are separate geographic markets for the manufacture and wholesale supply of superphosphate, the importation and wholesale supply of high analysis fertiliser and the wholesale supply of urea.
As BOP's trading interests are in the North Island and SouthFert's are in the South Island, and the two islands are separate markets, the proposal would not result in dominance being acquired or strengthened in any market.
Media contact: Chief Investigator Business Acquisitions John Preston
