The Commerce Commission has received an application from VPRS Limited and Visy Industries Australia Pty Limited (together Visy) seeking clearance to acquire certain businesses and assets of HP Industries Holding Limited and HP Industries (New Zealand) Limited (together HP).
The Commerce Commission has received an application from VPRS Limited and Visy Industries Australia Pty Limited (together Visy) seeking clearance to acquire certain businesses and assets of HP Industries Holding Limited and HP Industries (New Zealand) Limited (together HP).
Both Visy and HP supply a range of plastic packaging products. These include certain types of PET bottles, other plastic containers and closures which are commonly used for packaging goods including soft drinks, water, sunscreens and spreads.
Both HP Industries Holding Limited and HP Industries (New Zealand) Limited are currently in receivership.
In considering the application, the Commission's role is to determine whether the acquisition would harm competition in the market, to the extent that there would be a substantial lessening of competition.
Polyethylene Terephthalate (PET) is a common resin used in the manufacture of plastic products.
Assessing an application for a merger or acquisition
When considering a proposed merger, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
