The Commerce Commission this afternoon received an application from Massey University for clearance of a merger of the University with the Auckland College of Education.

Commission Chairman Peter Allport said that this is the first time that the Commission has received an application for clearance of a proposed merger in the public education sector.

Mr Allport said that the Commission expects to make its decision by December 21. The Commerce Act gives the Commission 10 working days to decide on a clearance, but allows for extensions if necessary.

The Commission must determine what are the relevant markets and investigate the impact of the proposed acquisition on those markets.

The Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market. It gives parties involved in an acquisition the right to apply for a clearance, which the Commission will grant if it is satisfied that dominance is not acquired or strengthened.

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

The Commission has previously looked at the possibility of mergers in the education sector and its legal opinion is that public sector educational institutions are not exempt from the Commerce Act.

Public copies of the application are available from reception at the Commission's 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