Commission declines to clear Fletcher Steel to acquire Steel and Tube
Published04 Nov 1999
The Commerce Commission today declined to clear Fletcher Challenge Steel Products Limited to acquire up to 100 percent of the shares in Steel and Tube Holdings Limited.
Commission Chairman John Belgrave said that the Commission was not satisfied that, should the acquisition go ahead, Fletcher Steel would not become dominant in any New Zealand steel market.
Fletcher Steel has told the Commission that it is likely to make a new application for clearance.
Mr Belgrave said that when the new application is received it will be treated urgently.
Background
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.
Parties can apply for a clearance, which the Commission will grant if it is satisfied that dominance is not acquired or strengthened.
Both the proposed acquirer and the owner of the assets or shares have rights to have the Commission's decision reviewed by the High Court.
