The Commerce Commission has granted clearance to Tomarata Sand Limited to acquire the assets and business of Coastal Resources Limited relating to sand mining operations at Tomarata in Northland.

The Commission considered the impact on the market for the supply of sand in the Northland region and concluded that while the proposed acquisition would remove one of the few suppliers in the market, on balance, existing competition is likely to provide a competitive constraint on the combined entity. In addition, the Commission considers the main customers of both Tomarata Sand and Coastal Resources would provide constraint through their ability either to self-supply or by fostering the expansion of existing competitors.

Accordingly, Commerce Commission Chair Dr Mark Berry said the Commission was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in any market.

A public version of the written reasons for the decision will be available as soon as practicable on the Commission's website at www.comcom.govt.nz/clearances-register

Background

Tomarata Sand Limited is a recently-formed company, owned by Stan Semenoff.   Mr Semenoff also has interests in a number of other companies involved in the supply of sand in the Northland region including Semenoff Sand Supplies Limited, Envirosands Northland Limited and Kaipara Water Transport Limited.

Coastal Resources Limited is based in the Northland region and also supplies sand.