The Commerce Commission has received an application from BP Oil New Zealand Limited for clearance to acquire Burmah Castrol NZ Limited.
The Commission's Commerce Act Manager, Geoff Thorn, said that the proposal is the New Zealand arm of the international acquisition by BP Amoco plc of Burmah Castrol plc. Both companies are British-based and operate throughout the world.
In its application, BP states that both companies manufacture and wholesale lubricants, oils, detergents and degreasing agents. BP is also involved in all levels of the petrol industry, while Castrol also produces chemicals used in the building industry.
Mr Thorn said that the Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.
Parties can apply for a clearance, which the Commission will grant if it is satisfied that dominance is not acquired or strengthened. The Act gives the Commission 10 working days in which to make its decision, but allows for extensions of time if necessary. Working day 10 would be May 19.
A clearance, if granted, protects an acquisition from court action under the Act.
