Carter Holt Harvey applies for clearance to acquire Norske's Tasman pulp mill
Published01 Feb 2001
A proposed business acquisition involving two of the world's biggest forestry companies has come to the Commerce Commission for clearance.
The Commerce Commission has received an application from Carter Holt Harvey Limited (CHH) for clearance to acquire the kraft pulp processing assets of Norske Skogindustrier ASA at the Tasman Mill.
The Commission's Commerce Act Manager, Geoff Thorn, said that the world's largest paper and forest products company, United States-registered International Paper, owns 50.3 percent of CHH. CHH is a forest products company, which operates throughout New Zealand as various business groups. Its pulp and paper division has plants at Whakatane, Penrose, Mataura and Kinleith.
Norske is an international forest industry company based in Norway. It acquired Fletcher Challenge Paper last year and is the leading supplier of newsprint in New Zealand, Australia, Asia and South America.
In its application, CHH states that the proposed acquisition is of assets at the Tasman Mill only, and not of shares in Norske nor of other assets owned by Norske.
Mr Thorn said that the Commission must determine what markets are relevant to the proposal, and then assess what impact the proposal would have on competition in those markets.
The Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market. The Commission will give a clearance if it is satisfied that dominance would not be acquired or strengthened.
The Commission has 10 working days in which to make its decision, but the Act allows for extensions of time if necessary. Working day 10 will be February 14.
The Commission will have public copies of CHH's application available soon.
