The Commerce Commission has received an application from Mainland Products Limited for clearance to acquire various assets of South Island Dairy Farmers Co-operative Limited (SIDF).

Mainland is 83 percent owned by Kiwi Co-operative Dairies Limited. Kiwi proposes to acquire all of SIDF's businesses and immediately sell SIDF's fresh milk and cream, and yoghurt and other cultured dairy food assets to Mainland.

Kiwi would own SIDF's milk supply contracts, milk powder plant, New Zealand Dairy Board shares and 15 percent of the Otago Cheese Company Limited.

Mainland is based in Dunedin, SIDF in Christchurch and Kiwi in Taranaki.

Commission Chairman Peter Allport said that the Commission should make its decision by May 5.

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

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

Media contact: Chief Investigator Business Acquisitions John Preston

Phone work (04) 498 0933

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its website www.comcom.govt.nz