The Commerce Commission today cleared P& O Nedlloyd Limited (PONL) to acquire the assets of Tasman Express Line Limited (TEL).
Commissioner Cathie Harrison said that the Commission was satisfied that, should the acquisition go ahead, PONL would not acquire or strengthen a dominant position in the national market for trans-Tasman shipping. This is the market for the shipment of goods by container between Australia and New Zealand.
PONL's share of this market, after the proposed acquisition, was estimated to be at a level that did not raise dominance concerns. In addition, it would be constrained by existing competition, in particular Australia New Zealand Direct Line, potential competitors entering, or expanding in, the market, and the ability of major customers to negotiate freight rates and other terms and conditions with shipping lines.
The proposal is for PONL to acquire TEL's goodwill, leased containers, spares parts for vessels and chartered vessels.
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 the Commission will grant if its is satisfied that dominance is not acquired or strengthened. A clearance, if granted, protects an acquisition from court action under the Act.
Public copies of the Commission's will soon be available on its website, www.comcom.govt.nz, and are available from reception at its Wellington office, level 7 Landcorp House 101 Lambton Quay.
