BOP Fertiliser cleared to acquire 40% of SouthFert
Published27 Feb 1996
The Commerce Commission today cleared Bay of Plenty Fertiliser Ltd to buy 40 percent of the shares of SouthFert Ltd, a wholly owned subsidiary of SouthFert Co-operative Ltd.
Commission Member Terry Stapleton said that in considering the application the Commission reviewed its previous investigations of the fertiliser industry. It concluded that because of high transport costs there are still separate North Island and South Island markets for the distribution of phosphatic fertilisers.
SouthFert does not manufacture phosphatic fertiliser in the North Island. Neither Bay of Plenty Fertiliser nor the companies that own it, Bay of Plenty Co-operative Fertiliser Company Ltd and Fernz Corporation Ltd, manufacture phosphatic fertiliser in the South Island.
Mr Stapleton said the Commission concluded that dominance would not be acquired or strengthened in any market.
Background
The Commerce Act prohibits business acquisitions which lead to dominance being acquired or strengthened in a market unless an acquisition is likely to result in such a benefit to the public that it should be permitted.
Parties can apply to the Commission for a clearance (which will be granted if the Commission is satisfied that dominance is not acquired or strengthened) or an authorisation (which will be granted if , notwithstanding dominance, the Commission is satisfied that the acquisition is likely to result in such a benefit to the public that it should be permitted).
A clearance or an authorisation prevents anyone taking court action against the acquisition under the Commerce Act.
Media contact: Communications Officer Vincent Cholewa
