The Commerce Commission is concerned about advertisements used by SouthFert against a Ravensdown proposal to takeover SouthFert.
The advertisements suggest that the Commission would be unlikely to approve Ravensdown's proposal.
That suggestion is incorrect. The Commission has not formed any view on Ravensdown's proposal and would not be in a position to do so until it received and considered an application by Ravensdown for either clearance or authorisation for its proposal.
The Commission is also concerned by comments made on national radio by Ravensdown that it has been told by the Commission that it has "an excellent case". The Commission has not told Ravensdown that it has "an excellent case". The Commission would not be in a position to express a view on Ravensdown's case until it received and considered an application by Ravensdown for either clearance or authorisation for its proposed takeover of SouthFert. None has yet been received.
The Commerce Act prohibits business acquisitions which lead to dominance being acquired or strengthened in a market unless an acquisition is likely to result in such a benefit to the public that it should be permitted.
Parties can apply to the Commission for a clearance (which will be granted if the Commission is satisfied that dominance is not acquired or strengthened) or an authorisation (which will be granted if, notwithstanding dominance, the Commission is satisfied that the acquisition is likely to result in such a benefit to the public that it should be permitted).
Media contact: Communications Officer Vincent Cholewa
