Second major finance industry application: CBA applies for clearance to acquire Colonial's NZ businesses
Published27 Apr 2000
The Commerce Commission has received an application from Commonwealth Bank of Australia Group (CBA) for clearance to merge the New Zealand businesses of itself and Colonial Limited.
CBA owns 75 percent of ASB Group Limited, which in turn wholly owns ASB Bank Limited, ASB Life Limited and Sovereign Limited.
Colonial, which is a diverse international financial services group, is based in Australia. In New Zealand, it provides a wide range of insurance, investment, superannuation and retirement services.
The proposed acquisition is the New Zealand arm of the planned merger of CBA and Colonial in Australia.
The Commission's General Manager, Ken Heaton, said that the Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.
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 an acquisition from court action under the Act.
The Act gives the Commission 10 working days in which to make its decision but allows for extensions of time if necessary. Working day 10 will be Wednesday May 10.
NZI/State Insurance
The Commission had previously received an application for clearance to merge New Zealand Insurance Limited (NZI) and State Insurance Limited.
The NZI/State proposal is the New Zealand arm of the proposed merger of their British-based parent companies, CGU plc, which owns NZI, and Norwich Union plc, which owns State.
Mr Heaton said that a decision on the NZI/State merger is due by Tuesday May 9.
Copies of both applications are available from reception at the Commission's Wellington office, level 7 Landcorp House, 101 Lambton Quay.
Media contact: Chief Investigator Business Acquisitions John Preston
