The Commerce Commission has received an application from UnitedNetworks Limited (UNL) for clearance to acquire TransAlta New Zealand Limited's gas distribution network in the Hutt Valley, Porirua, Newlands and Paekakariki regions.

Commissioner Dr Kate Brown said that the Commission expects to make its decision by February 25.

UNL is a listed company whose major shareholder is Utilicorp New Zealand Incorporated. It generates, distributes and retails electricity and runs a contracting business that works on its own and other networks. UNL previously traded as Power New Zealand.

TransAlta is a listed company that generates and retails electricity, and distributes and retails natural gas.

The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any markets. Parties can apply for clearance, which will be granted if the Commission is satisfied that dominance is not acquired or strengthened.

The Commission must determine the relevant markets and then assess what impact the proposed acquisition would have on competition in those markets.

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

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