The Commerce Commission today cleared the acquisition of the LPG stock and fixed assets of Energy Supply Ltd by Rockgas Ltd.
Commission Deputy Chairman, Terry Stapleton, said that the Commission was satisfied that the proposed acquisition would not result in Rockgas acquiring or strengthening a dominant position in either the national wholesale market for LPG or the retail market for LPG in the greater Wellington and Wairarapa areas.
Rockgas Ltd is an LPG wholesaler and retailer throughout New Zealand. Energy Supply Ltd is a wholly owned subsidiary of TransAlta New Zealand Ltd and retails LPG throughout the greater Wellington and Wairarapa areas.
Mr Stapleton said that although the proposed acquisition would result in some aggregation in the greater Wellington and Wairarapa retail LPG market, the amount was a long way from triggering any concerns. Rockgas faces strong retail competition from service stations and other LPG retailers. In addition, barriers to entry to the greater Wellington and Wairarapa retail LPG market appear to be low.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market. Parties can apply to the Commission for clearance, which will be given if the Commission is satisfied that dominance is not acquired or strengthened.
Media contact: General Manager John Feil
Phone work (04) 498 0963
Communications Officer Vincent Cholewa
Phone work (04) 498 0920
Commission media releases can be viewed on its website www.comcom.govt.nz
