Paloma Industries receives Commerce Commission clearance to acquire Southcorp
Published18 Jan 2002
The Commerce Commission has cleared Paloma Industries Limited, through its wholly owned subsidiary NZ Water Heater Company Limited, to acquire 100% of the water heaters and heating elements business of Southcorp Water Heaters NZ Limited.
Commission Deputy Chair Paula Rebstock said the Commission considered the competitive constraints that may arise from existing competition following this merger.
"The Commission considered the probable nature and extent of competition that would exist in the markets for the supply of water heaters to wholesalers in New Zealad," said Ms Rebstock.
"At the conclusion of its analysis, the Commission is satisfied that the proposed acquisition would not have the effect of substantially lessening competition in the New Zealand market."
A public version of the Commission's full decision will be available next week on the Commission's website,
Background
Paloma Industries Limited is a privately held Japanese company. The ultimate holding company of Paloma is Paloma Co., Ltd, which is the producer of gas appliances, including water heaters.
Paloma Co., Ltd, together with its subsidiaries, manufactures and sells water heaters in Japan. Its products are sold throughout Asia, including Australia and New Zealand. Paloma Co., Ltd also owns the North American based Rheem Manufacturing Company.
NZ Water Heater company is a wholly owned subsidiary of Australian Water Heater Pty Ltd, which is a wholly owned subsidiary of Rheem US Holding Inc., which in turn is owned by Paloma.
Paloma produces gas appliances, including water heaters, in Japan and imports these into New Zealand.
Southcorp Water Heaters NZ Limited is part of the Southcorp Water Heaters Group based in Australia. The ultimate holding company of the Southcorp Water Heaters Group is Southcorp Limited, a major company listed on the Australian Stock Exchange.
Southcorp New Zealand manufactures and supplies residential and commercial water heaters under the "Rheem" and "Vulcan" brands.
Media contact: Manager Market Structure Richard Braae
