The Commerce Commission today declined to clear Tip Top Ice Cream Company Ltd's proposed acquisition of the "New American" take home ice cream business of United Dairy Foods Ltd.

Commission Chairman Dr Alan Bollard said the Commission was not satisfied that Tip Top would not acquire a dominant position in the take home ice cream market if the proposal were implemented.

The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets.

In this case, the Commission identified the relevant market as the New Zealand-wide market for the wholesale supply of take home ice cream.

On September 24 last year the Commission declined to clear the proposed acquisition by Tip Top of New American's take home ice cream, frozen novelties/scoop and frozen desserts business due to dominance concerns in the take home ice cream market.

A subsequent application by Tip Top to acquire all of New American's ice cream business, except for the "New American" brand for use in connection with take home ice cream, was cleared by the Commission on October 31 last year.

The Commission's view is that since its October 31 decision, there has been little change in market conditions in the take home ice cream market with the exception of the import of small quantities of Streets' take home ice cream from Australia on a trial basis.

The Commission did not consider that Streets' potential entry to the take home ice cream market was likely, or, if it did occur, would be sufficient in extent to constrain Tip Top if Tip Top owned "New American".

In the latest application, Tip Top had sought clearance to acquire the trade names and trade marks, goodwill and business assets associated with the "New American" take home ice cream business of United Dairy Foods Ltd.

Public copies of the Commission's decision are available from reception at its Wellington office, level 7, Landcorp House, 101 Lambton Quay

Media contact: Commerce Act Manager Jo Bransgrove

Phone work (04) 498 0958

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz