The Commerce Commission today received an application from Kiwi Co-operative Dairies for clearance of its proposed acquisition of Tui Milk.
Commission Chairman Dr Alan Bollard said the Commerce Act prohibits acquisitions that result in dominance being acquired or strengthened in any market.
The Commission will grant a clearance if it is satisfied that dominance is not acquired or strengthened.
"We must determine what markets are affected and how the proposal would impact on competition," Dr Bollard said.
The Act gives the Commission 10 working days in which to makes it decision, but does allow for extensions if needed. The Commission will advise of its timetable once its preliminary considerations are complete.
If granted, a clearance protects the acquisition from court action under the Commerce Act.
Copies of the application are available from the Commission's Wellington office.
