Commission clears Air Liquide and Air Products and Chemicals to acquire BOC
Published23 Dec 1999
The Commerce Commission today cleared L'Air Liquide S.A. and Air Products and Chemicals Inc to acquire The BOC Group plc.
The proposal is part of an international acquisition. Air Liquide and Air Products are to form a joint venture company to acquire the shares in BOC. Air Liquide is based in France, Air Products in the United States and BOC in Britain. The transaction is currently being negotiated in London.
At the conclusion of the international acquisition, the joint venture company in New Zealand will divest the assets of BOC to Air Products.
Commission Chairman John Belgrave said that the effect of the acquisition in New Zealand would be to replace BOC as a gas producer and supplier with Air Products, with no market aggregation resulting.
BOC and Air Liquide are both involved in the production and supply of industrial gases in New Zealand. Air Products is not currently involved in the New Zealand market.
The operation of Air Liquide and BOC, for the period from acquisition until actual divestment, is subject to confidential undertakings given to the Commission. Mr Belgrave said that the effect of the undertakings is to ensure that the two companies are traded independently of each other.
Background
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets.
Parties can apply for a clearance, which will be granted if the Commission is satisfied that dominance is not acquired or strengthened. A clearance, if granted, protects an acquisition from legal action under the Commerce Act.
