Commission declines to clear Medical Waste Group to acquire San-I-Pak
Published24 Jan 2000
The Commerce Commission has declined to clear Medical Waste Group Limited to acquire the business of San-I-Pak (NZ) Limited.
Commissioner Cathie Harrison said that the Commission was not satisfied that the proposal would not result in Medical Waste Group acquiring or strengthening a dominant position in the South Island market for the collection and treatment of medical and quarantine waste.
Both companies are involved in the collection and treatment of two sorts of waste: medical wastes from hospitals and other medical facilities, and quarantine wastes arriving from other countries. As these wastes are classified as hazardous waste material, they are currently either incinerated or sterilised in an autoclave. After processing, solid waste residues are disposed of in landfills and liquid residues are disposed of into waste water systems.
In the South Island, the two companies have a very high combined market share, and the Commission is not satisfied that the merged entity would face constraint from existing or potential competitors, or from most buyers of its services, within a reasonable timeframe.
For these reasons, the Commission was not satisfied that this proposal would not result in a strengthening of a dominant position in a market.
The Commission was satisfied that the merged entity would not acquire or strengthen a dominant position in the North Island market for the collection and treatment of medical and quarantine waste.
Background
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets.
Parties can apply for a clearance, which the Commission will grant if it is satisfied that dominance is not acquired or strengthened. A clearance, if granted, protects an acquisition from legal action under the Act.
