The Commerce Commission has approved an application from Firth Industries to acquire the assets comprising the ready-mixed concrete business of Gill Construction Co Limited in Blenheim.
Chair John Belgrave said the Commission is satisfied that the proposed acquisition would not have, nor would be likely to have, the effect of substantially lessening competition in the Marlborough ready-mix concrete market.
"In assessing the application, the Commission determined that low barriers to entry meant a potential new entrant could easily establish an operation of similar scale to Gill's to compete in the ready-mix concrete market."
The Commission's written decision on the application will be available soon on the Commission's website, www.comcom.govt.nz/adjudication.
Background
Firth Industries is a division of Fletcher Concrete and Infrastructure Limited. Its business is the manufacture and distribution of building materials, in particular ready-mixed concrete and concrete masonry products and dried, bagged cement and aggregate products. Firth Industries has ready-mix concrete facilities across the country, including a plant in Blenheim.
Gill is a privately owned company that owns and operates transport, civil contracting, farm forestry, quarry and ready-mixed concrete businesses.
Media contact: Richard Braae, Manager, Market Structure Group
Phone work (04) 924 3650
Jackie Maitland, Communications Manager Phone work (04) 924 3708, mobile 029 924 3708
Commission media releases can be viewed on its web site www.comcom.govt.nz
