The Commerce Commission yesterday evening cleared The Cremation Society of Canterbury Limited to acquire up to 100 percent of the shares in Harewood Cremation Limited.
Commission Deputy Chairman Peter Allport said that the Commission was satisfied that the proposed acquisition would not result in The Cremation Society acquiring or strengthening a dominant position in any market.
Mr Allport said that the two relevant markets in this case were those for the provision of cremation services, and for the interment of ashes and installation and maintenance of memorials in the greater Christchurch area.
Should the proposal go ahead, then the combined entity would have 100 percent of the market for providing cremation services in Christchurch.
Barriers to entering this market are low. Larger funeral directors have told the Commission that if they were dissatisfied with the prices or services offered by the combined entity they would have no hesitation in buying their own cremators and offering cremation services themselves.
In the market for the interment of ashes and installation and maintenance of memorials in Christchurch, people would continue to have a range of options, including interment of ashes in one of five council-owned cemeteries.
Media contact: Commerce Act Manager Jo Bransgrove
Phone (04) 498 0958
Communications Officer Vincent Cholewa
Phone (04) 498 0920
Copies of Commission media releases can be viewed on its web site www.comcom.govt.nz
