The Commerce Commission today cleared Kiwi Co-operative Dairies Ltd to acquire up to 100 percent of the shares of Hawke's Bay Milk Producers Co-operative Ltd.
Commission Chairman Dr Alan Bollard said the proposed acquisition would not result in Kiwi
Co-op acquiring a dominant position in any market.
Dr Bollard said the Commission considered the application in relation to the supply and acquisition of unprocessed milk, the processing and wholesale delivery of town milk and the wholesale supply of ice cream.
The Commission concluded that the relevant geographic market for unprocessed milk is at least the lower half of the North Island. Tui Milk Products Ltd would continue to provide sufficient competition to prevent Kiwi Co-op acquiring a dominant position from this proposal.
The geographic market for processing and wholesale supply of town milk is at least the greater part of the North Island. This being so, competition from Tui Milk and from New Zealand Dairy Group would continue.
The wholesale ice cream market is national, and Kiwi Co-op and Hawke's Bay Milk's combined market share would be less than five percent.
The proposal would not result in aggregation in any other milk product markets.
Media contact: Communications Officer Vincent Cholewa
