Commission clears Telarc to acquire part of Standards NZ
Published01 Aug 1997
The Commerce Commission yesterday evening cleared Telarc Limited to acquire the Management System Certification Division of Standards New Zealand.
Commission Chairman Dr Alan Bollard said that, should the acquisition go ahead, Telarc would not acquire or strengthen a dominant position in the market for the provision of management systems certification services by accredited certification bodies.
Both Telarc and Standards NZ are Government owned entities which report to the Minister of Commerce.
Telarc is a certification body involved in the assessment and certification of quality management systems to ISO 9000 standards and environmental management systems to ISO 14000 standards.
The Management System Certification Division of Standards NZ also undertakes assessment and certification to ISO 9000 and ISO 14000 standards. Standards NZ's other business, product certification under the "S Mark", is not included in the proposed acquisition.
Should the proposal go ahead, Telarc would have a combined market share of about 62 percent. Eight competitors would remain, the largest of which, SGS International Certification Services Pty Ltd, would have an 11.5 percent market share.
In addition, the proposed acquisition would not prevent existing market participants from expanding their own services, or overseas organisations from entering the New Zealand market.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.
Parties can apply for a clearance, which will be granted if the Commission is satisfied that dominance is not acquired or strengthened.
Public copies of the Commission's decision are available from reception at its Wellington office, 7th floor, Landcorp House, 101 Lambton Quay.
