The Commerce Commission today cleared Look Outdoor Limited and Adshel Street Furniture Limited to acquire the outdoor advertising business of 3M New Zealand Limited, operating under the name 3M Media.

Commissioner Terry Stapleton said that the Commission was satisfied that, should the acquisition go ahead, Look and Adshel would not acquire or strengthen a dominant position in the market for outdoor advertising in New Zealand.

The Commission concluded that considerable competition would remain from existing competitors, principally OGGI Advertising Limited, and a number of smaller companies. In addition, advertising agencies and media buying groups have considerable buying power.

The combined entity would have a market share within the Commission's "safe harbour" of no more than 60 percent of the market with at least one competitor having a share of 15 percent or more.

3M Media is based in Auckland, and is a subsidiary of Minnesota Mining & Manufacturing Company in the United States. It is involved in outdoor advertising in New Zealand in the form of billboards, illuminated signs, airport advertising, luggage trolley advertising and street furniture advertising. The street furniture includes "Metrolite" bus shelters.

Look is based in Auckland and is a subsidiary of The Radio Network of New Zealand Limited. It already owns billboards in New Zealand. It proposes to acquire 3M Media's billboards, illuminated signs, airport advertising and luggage trolley advertising businesses.

Adshel is based in Sydney and is involved in outdoor advertising in Australia. It proposes to acquire 3M Media's street furniture advertising business.

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.

The Business Acquisitions Guidelines published by the Commission state two safe harbours within which dominance is unlikely to be acquired or strengthened. These are:

? a post acquisition market share of less than 40 percent; and

? a post acquisition market share of less than 60 percent if at least one competitor has no less than 15 percent.

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 website www.comcom.govt.nz