The Commerce Commission today cleared the acquisition of Gas Again Supply Corporation Limited by Rockgas Limited.
Commission member, Terry Stapleton, said that the Commission was satisfied that the proposed acquisition would not result in Rockgas acquiring or strengthening a dominant position in the retail market for LPG in the greater Auckland area.
Rockgas is an LPG wholesaler and retailer throughout New Zealand. It is a 50 percent owner of existing Auckland LPG retailer, Gas Call. Gas Again is another Auckland LPG retailer.
Mr Stapleton said that although the proposed acquisition would result in minor aggregation in the greater Auckland retail LPG market, the amount was a long way from triggering any concerns. Rockgas faces strong retail competition from service stations and other independent LPG retailers. In addition, barriers to entry to the greater Auckland 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.
