The Commerce Commission today cleared Spotless Services (NZ) Limited to acquire all of the shareholding in P&O Catering and Services Limited.

Deputy Chairman Mark Berry said that the Commission was satisfied that, should the acquisition go ahead, Spotless would not acquire or strengthen a dominant position in the national market for institutional catering services.

Mr Berry said that the Commission is satisfied that existing competition from participants in this market, including the ability of institutions to self-cater, would constrain a combined Spotless and P&O. Further, the Commission considered that barriers to entry into the market are not onerous, and the threat of potential entry from a local or overseas operator is likely to act as a constraint on the combined entity.

The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets.

Media contact:

Commerce Act Manager Geoff Thorn

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz