The Commerce Commission has granted clearance for GEA Process Engineering A/S to acquire 100 per cent of the shares in Nu-Con Limited.
The Commerce Commission has granted clearance for GEA Process Engineering A/S to acquire 100 per cent of the shares in Nu-Con Limited.
Commerce Commission Chair Dr Mark Berry said the Commission was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the national markets for the supply of:
milk powder handling systems;
high output milk powder packaging systems; and
low output milk powder packaging systems.
The Commission considers that competition from existing participants in each of these markets is likely to be sufficient to constrain the merged entity. These systems are all used in a milk powder processing plant and the proposed acquisition is unlikely to create market power at any of the different processing stages.
A public version of the written reasons for the decision will be available shortly on the Commission's website at: www.comcom.govt.nz/clearances-register
Background
GEA supplies processing equipment that is used in the dairy, food and pharmaceutical industries. The main use in New Zealand for this type of equipment is in the handling and packaging of milk powder. Nu-Con also supplies a range of processing equipment.
