Commission Deputy Chair Paula Rebstock said that the Commission is satisfied that the proposed acquisition would not substantially lessen competition in the market for the manufacture and supply of industrial and institutional detergents and systems in New Zealand.
Ms Rebstock said the Commission considered the probable nature and extent of competition that would exist in the market.
"The Commission formed the view that the proposed acquisition would not result in the merged entity obtaining a market share that falls outside the Commission's safe harbours, and that there would be effective competition from existing participants," said Ms Rebstock
A public version of the Commission's full decision will be available next week on the Commission's website,
Background
The acquisition is a global transaction announced on 20 November 2001. It is expected to take place in mid-February 2002 and is subject to the fulfilment of conditions, including regulatory consents where required.
SC Johnson Commercial Markets, Inc, is a Delaware corporate and a wholly owned subsidiary within the Johnson Wax Professional Group. In New Zealand, the Johnson Wax Professional Group is headed by Johnson Wax Professional New Zealand Limited.
The DiverseyLever Group is represented in New Zealand by Unilever New Zealand Limited and DiverseyLever New Zealand Limited (DLNZ). DLNZ is a wholly owned subsidiary of Unilever New Zealand Limited.
The merged entity will manufacture and supply "professional" detergents, cleaning and hygiene products and systems to commercial and institutional customers (such as hotels, hospitals and commercial cleaning contractors). In addition, the merged business will sell to industrial customers, particularly food and beverage cleaning products and hygiene chemicals and systems.
Media contact: Manager Market Structure, Richard Braae
Phone work (04) 498 4720
Communications Manager Jackie Maitland
Phone work (04) 498 0920, cellphone (025) 249 3407
