The Commerce Commission has ended its investigation of a business acquisition in the New Zealand sugar industry with a settlement in which the companies involved have given undertakings to not seek renewal of duty on some imported sugar other than in exceptional circumstances, allow third party access to some assets and divest certain other assets.

Commission Chairman Peter Allport said that the Commission, The New Zealand Sugar Company Limited, Mackay Sugar Cooperative Association Limited, CSR Limited, E D & F Man New Zealand Limited and E D & F Man Australia Pty Limited have signed a Deed of Settlement under which the Commission will not take court action and the companies give the following undertakings:

  • The parties will not seek to renew the anti-dumping

    duties on imported refined sugar from Malaysia, which are

    due to expire in November.

  • New Zealand Sugar will allow third parties to use its

    Christchurch sugar liquefaction plant.

  • Mackay and Man have agreed to sell de-bagging and bulk

    truck loading facilities and a weighbridge to competitor

    Kerry New Zealand Limited.

The undertaking not to seek renewal of anti-dumping duties on refined sugar from Malaysia would not prevent the parties from seeking their reimposition if subsidised imports subsequently were to threaten the viability of the New Zealand sugar industry.

The aim of these undertakings is to allow greater imports of refined sugar, increase the choice available to major users of liquid sugar and give Kerry ownership of equipment it can use for handling imported sugar.

The New Zealand acquisition is the result of a complex series of transactions involving the Australian parent companies. It has the effect of combining New Zealand's only sugar refinery, owned by New Zealand Sugar, and Mackay's sugar importing and distribution businesses.

New Zealand Sugar produces the "Chelsea" brand of retail sugar while Mackay's customers are predominantly industrial users.

The Commission began its investigation in mid 1997. In September of that year the companies signed a Deed that prevented the intermingling of the assets of New Zealand Sugar with Mackay in such a way that a court could not effectively order divestiture. That first Deed stayed in force until the Commission concluded its investigation.

Media contact: Commerce Act Manager Jo Bransgrove

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz