The Commerce Commission today cleared Blue Star Group Ltd to acquire 100 percent of the shares in General Packaging Ltd (GPL).
Commission Chairman Dr Alan Bollard said the proposed acquisition would not result in Blue Star acquiring or strengthening a dominant position in any market.
Blue Star is a nation-wide supplier of office furniture, office equipment and commercial stationery. It also owns Whitcoulls Group which includes GP Print.
GPL is a supplier of packaging materials, cleaning products, cafeteria services and commercial stationery in the metropolitan Auckland area.
Blue Star does not supply packaging materials, cleaning products or cafeteria services, and, should the proposal go ahead, competition from other companies in the markets for these goods and services would constrain it.
GPL's share of the commercial stationery markets is very small and is limited to Auckland. Competition would remain in Auckland from Office Products Depot, Warehouse Stationery, Corporate Express and Paper Plus, all of whom have told the Commission that they plan to increase their respective market shares.
Blue Star is the only source of some brands of commercial stationery and is vertically integrated, having manufacturing, wholesaling and retailing operations.
Competitors have already shown that comparable items are available from a combination of other New Zealand suppliers and as imports, and Blue Star's vertical integration has not resulted in it becoming dominant.
This proposal would not alter the situation and the Commission is satisfied that Blue Star would not acquire or strengthen a dominant position by acquiring GPL.
Media contact: Chief Investigator Business Acquisitions John Preston
