Commission clears Wilson to acquire council carparks subject to divestment of assets
Published16 Apr 1997
The Commerce Commission today cleared Wilson Parking Ltd to acquire four Wellington City Council carparking businesses, subject to Wilson divesting assets.
Commission Chairman Dr Alan Bollard said that the Commission is satisfied that, subject to the divestment, Wilson would not acquire or strengthen a dominant position in any market.
The assets to be divested and the deadline for the divestment are specifically stated in the Commission's decision but are being treated as confidential because they are commercially sensitive.
The clearance is for Wilson to acquire freehold ownership of the James Smith's carpark, the Lombard parking building and the Marion Street carpark, and the 10 year management rights for the Clifton Terrace carpark.
Wilson had previously applied to the Commission for a clearance but the first proposal was declined - the Commission was not satisfied that Wilson would not acquire or strengthen a dominant position in the market for long stay casual parking.
Wilson then made a second application which included additional market share information. Further information was provided by Wilson subsequent to its application. The Commission was to have made a decision by Thursday last week. However, on Thursday afternoon Wilson confirmed a divestment undertaking, and the Commission then extended the deadline for its decision until today.
The Commission concluded after its second investigation and considering the extra information provided by Wilson, that the relevant markets were those for public short-stay parking, public long-stay parking and reserved parking.
The short-stay and long-stay markets are the same as those used in the Commission's previous decision. The reserved market was referred to in that decision but was not further examined then.
"We are satisfied that with the divestment, Wilson will not acquire or strengthen a dominant position in any market," Dr Bollard said. "Existing competition from Condren's, coupon parking and metered parking will constrain Wilson."
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets. Parties can apply to the Commission for a clearance, which will be granted if the Commission is satisfied that dominance is not acquired or strengthened.
A clearance can be granted subject to divestment of assets or shares. If divestment does not occur as specified in the decision, then the clearance does not apply and the Commission or anyone else can take legal action under the Commerce Act.
