The Commerce Commission received an application yesterday from Kiwi Co-operative Dairies Limited for clearance to acquire South Island Dairy Co-operative Limited (SIDCO).

Commission Chairman Peter Allport said that the Commission expects to make its decision by early February.

Kiwi is based in Taranaki and is New Zealand's second largest dairy company, behind Waikato-based New Zealand Dairy Group. Kiwi has interests in a wide range of dairy-based businesses, including some in the South Island.

SIDCO is based in Christchurch and is the South Island's largest dairy company.

The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets. Parties can apply for clearance, which will be granted if the Commission is satisfied that dominance is not acquired or strengthened.

The Commission must determine the relevant markets and then assess what impact the proposed acquisition would have on competition in those markets.

A clearance, if granted, protects an acquisition from court action under the Act.

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

Kiwi currently undertakes the following business activities:

  • acquisition and processing of raw milk;
  • manufacture and processing of various dairy and powdered milk products, principally for export;
  • processing and wholesale distribution of liquid milk;
  • marketing of industrial and food ingredients;
  • marketing of abalone food and spray on hay protectant;
  • farm merchandise retailing;
  • manufacture and marketing of ice-cream; and
  • generation and sale of electricity.

SIDCO currently undertakes the following business activities:

  • acquisition and processing of raw milk;
  • manufacture and processing of various dairy and powdered milk products, principally for export;
  • manufacture and processing of yellow table spread under the name "Cloverlea Gold"; and
  • wholesale distribution of "Pioneer" and "Cloverlea" brands of cheddar cheese.

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