Commission to issue preliminary view on Kiwi's bid for SIDCO on March 29
Published16 Mar 1999
The Commerce Commission expects to issue its draft determination on Kiwi Co-operative Dairies Limited's proposal to acquire South Island Dairy Co-operative Limited (SIDCO) on March 29.
The Commission's Commerce Act Manager, Geoff Thorn, said that the draft determination will state whether, on information then available, the Commission would or would not authorise Kiwi to acquire SIDCO.
Interested parties will have until April 13 to make submissions on the draft determination and experts employed by interested parties will have until April 20 to make their submissions. A conference will be held on May 5-6.
The Commission will draw together the information from its investigation, the submissions and the conference to make its final decision by May 26.
An authorisation, if granted, protects an acquisition from court action under the Commerce Act.
General background
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets.
Parties can apply for authorisation of an acquisition that would otherwise be prohibited because of dominance concerns. An authorisation is granted if the Commission is satisfied that public benefits from the proposal outweigh its detriments to competition.
Further information
Relevant documents available from the Commission's website, www.comcom.govt.nz, and its Wellington office are:
Business Acquisitions Guidelines;
Guidelines to the Analysis of Public Benefits and Detriments; and
Decision No. 341, Kiwi Co-operative Dairies Limited/South Island Dairy Co-operative Limited, 26 February 1999. (In this decision the Commission declined to grant a clearance.)
Relevant documents available in hard copy from the Commission's Wellington office are:
Conference Procedures; and
Kiwi's application for authorisation to acquire SIDCO.
Media contact: Commerce Act Manager Geoff Thorn
Phone work (04) 498 0958
Communications Officer Vincent Cholewa
Phone work (04) 498 0920
Commission media releases can be viewed on its web site www.comcom.govt.nz