Commission clears proposal to combine ownership of plastic pipe manufacturers Marley and Keyplas
Published12 Sep 2000
The Commerce Commission has cleared Etex Holding BV to acquire all of the shares in Milnes Holdings Limited.
Etex is a company based in the Netherlands and is part of the same group that owns Marley New Zealand Limited. Marley manufactures a wide-range of products, including PVC pipes and fittings.
Milnes Holdings is an Australian company that owns, in New Zealand, PVC pipe manufacturer Keyplas Limited.
Commission Chair John Belgrave said that the Commission was satisfied that, should the proposal go ahead, no party would acquire or strengthen a dominant position in the New Zealand market for manufacturing and wholesaling PVC pipe systems.
The remaining competitor, Iplex Pipelines New Zealand Limited, has substantial market share and would constrain a merged Marley/Keyplas.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets in New Zealand.
Parties can apply for a clearance, which the Commission will grant if it is satisfied that dominance is not acquired or strengthened. A clearance, if granted, protects an acquisition from court action under the Act.
