The Commerce Commission today cleared the proposed acquisition by The Procter & Gamble Company of all the shares in Tambrands Inc.
While the acquisition is to take place offshore, it is potentially subject to the provisions of the Commerce Act. This is because the transaction is to be carried out by a party who carries on business in New Zealand, and affects a market in New Zealand.
Commission Deputy Chairman Peter Allport said that the acquisition, if implemented, would not result in any person acquiring or strengthening a dominant position in any markets.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened. Parties can apply to the Commission for clearance which will be granted if the Commission is satisfied that dominance is not acquired or strengthened.
Procter & Gamble distributes feminine hygiene products in New Zealand through a local subsidiary. Tambrands also supplies feminine hygiene products through Hilton Bonds NZ (1991) Ltd.
"The proposal would result in aggregation of market share in the market for feminine protection products, but the combined entity would face competition from two other distributors, Johnson & Johnson NZ Ltd and Carter Holt Harvey Ltd", Mr Allport said.
