Commission asked to consider Ravensdown bid for SouthFert
Published29 Mar 1996
The Commerce Commission this evening received an application for authorisation of Ravensdown Corporation Ltd's proposal to acquire up to 100 percent of the shares of SouthFert Co-operative Ltd.
Commission Chairman Dr Alan Bollard said Ravensdown and SouthFert are the only producers of phosphatic fertilisers in the South Island.
The Commerce Act prohibits business acquisitions which result in dominance being acquired or strengthened in any market. However, it allows them to be authorised if the Commission is satisfied that public benefits from the acquisition outweigh detriments to competition.
If granted, an authorisation protects an acquisition from court action under the Act.
The Commission will release a timetable for its investigation of the proposal as soon as it has fully studied the application.
In considering an authorisation, the Commission must investigate the application, publish a draft determination giving its preliminary views and consider submissions on the draft determination from interested parties. If required, it may call for a conference of interested parties to gain further information.
The process ends with the release of a final decision.
