The Commerce Commission has received an application from Kiwi Co-operative Dairies Limited for authorisation to acquire South Island Dairy Co-operative Limited (SIDCO).
On Friday last week the Commission declined to clear Kiwi to acquire SIDCO. An authorisation is a longer process that allows the Commission to look at public benefits and detriments.
Commission Chairman Peter Allport said that the Commerce Act requires the Commission to make its decision on an authorisation within 60 working days, which is by May 25. The Commission will publish the timetable as soon as it is finalised.
The Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets.
An acquisition that is prohibited because of dominance can still be authorised if the Commission is satisfied that public benefits from the acquisition would outweigh detriments to competition.
The Act requires the Commission to investigate an application for authorisation and then publish a draft determination giving its preliminary view that, on the information then available, it would or would not grant an authorisation.
Interested parties can make submissions on the draft determination and a conference may also be held.
The Commission makes its final determination by drawing together the information from its investigation, submissions and the conference.
An authorisation, if granted, protects an acquisition from court action under the Act.
Background
A clearance, for which Kiwi previously applied, is granted if the Commission is satisfied that dominance is not acquired or strengthened.
The Commission concluded last week that it was not satisfied that a merged Kiwi/SIDCO would not acquire or strengthen a dominant position in the South Island market for the acquisition/supply of unprocessed milk.
Public copies of the Commission's clearance decision are available on its website www.comcom.govt.nz and from reception at its Wellington office, level 7, Landcorp House,
101 Lambton Quay.
Media contact: Commerce Act Manager Geoff Thorn
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
