The Commerce Commission has published a statement of preliminary issues relating to an application received from New Zealand Comfort Group Limited seeking clearance to acquire the business assets of Dunlop Living Limited.   New Zealand Comfort Group and Dunlop Living both manufacture and supply beds, polyurethane (PU) foam and carpet underlay.  

The statement of preliminary issues outlines the key competition issues the Commission currently considers will be important in deciding whether to grant clearance. The Commission's statement of preliminary issues and the public version of the application can be accessed via the Commission's website at www.comcom.govt.nz/clearances-register

The Commission invites submissions from parties who consider that they have information relevant to the Commission's consideration of this matter. Submissions can be sent to registrar@comcom.govt.nz with the reference New Zealand Comfort Group / Dunlop Living in the subject line of your email or to PO Box 2351, Wellington 6140 by Monday 23 May 2011.

Background

New Zealand Comfort Group Limited (formerly known as Sleepyhead Manufacturing Limited) is ultimately 100 per cent owned by interests associated with Graeme and Craig Turner.  

New Zealand Comfort Group's core business is the manufacture and wholesale supply of beds. It also manufactures PU foam, using a horizontal continuous slabstock manufacturing process. Most of this foam is for use in its own bed manufacturing. New Zealand Comfort Group also manufactures foam carpet underlay and latex foam.

Dunlop Living Limited is 70 per cent owned by Rangatira Limited, 15 per cent owned by interests associated with Michael Sexton, and 15 per cent owned by the interests associated with Richard Adams.  

Dunlop Living is a manufacturer and wholesale supplier of beds and other furniture. It manufactures PU foam, using a horizontal continuous slabstock manufacturing process which it then uses in its own bed manufacturing. Dunlop Living converts and supplies PU foam to competing bed and furniture manufacturers. Dunlop Living also manufactures foam carpet underlay.