The Commerce Commission yesterday cleared Cheetham Salt Ltd to acquire around a 50 percent interest in the Dominion Salt group of companies.
Commission Chairman Dr Alan Bollard said the Commission was satisfied that Cheetham would not acquire or strengthen a dominant position in any market if the proposed acquisition goes ahead.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in a market.
Cheetham is an Australian salt producer with no current trading interests in New Zealand. The company proposes to acquire Skellerup Group Ltd's shares in Dominion. Cerebos Gregg's Ltd would continue to own the remaining shares in Dominion.
Cheetham is Dominion's major external supplier of coarse salt. Dominion is New Zealand's only producer of coarse salt and also refines salt for use in various industrial products and as packaged table salt.
Several other companies will continue to import coarse and refined salt from sources other than Cheetham. One of these companies also refines salt.
Media contact: Communications Officer Vincent Cholewa
