Marlborough Electric and Tasman Energy cleared to merge
Published28 Mar 1996
The Commerce Commission today cleared the merger of Marlborough Electric and Tasman Energy.
The owners of the two power companies are presently consulting consumers regarding the desirability of the merger.
Commission Chairman Alan Bollard said that after studying the proposal, the Commission concluded the proposed merger would not result in either company acquiring or strengthening a dominant position in any market.
The Commission considered the impact of the proposal on several electricity distribution and retailing markets.
The Commission's view is a merger of Marlborough Electric and Tasman Energy would result in minor aggregation in the competitive national retail electricity market but no loss of cross-border competition in electricity distribution markets. While the companies are neighbours, local geography prevents any possible cross-border competition.
In addition, the competitive constraints currently faced by the two companies would not be significantly changed by the proposed acquisition.
Media contact:Communications Officer Vincent Cholewa
