Commission receives second clearance application from Gallagher Holdings to acquire Tru-Test
Published16 Nov 2004
The Commerce Commission has received a second application from Gallagher Holdings Limited seeking clearance to acquire 100 percent of the shares of Tru-Test Corporation Limited.
The Commerce Commission has received a second application from Gallagher Holdings Limited seeking clearance to acquire 100 percent of the shares of Tru-Test Corporation Limited.
The new application includes a divestment undertaking by Gallagher whereby it has offered to divest the Stafix electric fence business assets in New Zealand. The proposed divestment would include:
the Stafix brand for use worldwide;
available documentation with respect to technical knowledge;
royalty free access to all intellectual property; and
plant and equipment.
In August this year, the Commission declined to grant clearance to Gallagher to acquire Tru-Test on the basis that the Commission was not satisfied that the proposed acquisition would not have, or would not be likely to have, the effect of substantially lessening competition in the national market for the manufacture and wholesale supply of rural and security electric fencing products. The clearance application had included a divestment undertaking whereby Gallagher offered to divest the PEL brand, a rural electric fencing brand owned by Tru-Test.
In considering this new application, the Commission's role is to determine whether the merger has the effect of substantially lessening competition in a market.
The Gallagher Group is headquartered in Hamilton and comprises a number of companies with a primary focus on the design, manufacture and marketing of animal and security management systems in New Zealand. Gallagher's key products include: rural and industrial fencing products; animal weighing systems; contract manufacturing products; security access control products; and fuel dispensing products.
Tru-Test is headquartered in Auckland, and designs, manufactures and markets agritech solutions.
