Commission clears United Networks to acquire TransAlta's gas distribution network
Published12 Mar 1999
The Commerce Commission today cleared UnitedNetworks Limited (UNL) to acquire the gas distribution network assets of gas and electricity retailer, TransAlta New Zealand Limited.
UNL, formerly Power New Zealand Ltd, recently purchased TransAlta's electricity distribution network and is principally an energy networks business.
Commissioner Dr Kate Brown said that the Commission was satisfied that, should the acquisition go ahead, UNL's dominant position in the electricity distribution market would not be strengthened. The Commission was also satisfied that the acquisition would not result in TransAlta's current dominant position in the gas distribution market being strengthened as a result of UNL acquiring the gas network.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets.
Parties can apply for a clearance, which will be granted if the Commission is satisfied that dominance is not acquired or strengthened. A clearance, if granted, protects an acquisition from legal action under the Act.
Public copies of the Commission's decision are available from reception at its Wellington office, Level 7, Landcorp House, 101 Lambton Quay.
