The Commerce Commission received an application today from RII Weyerhaeuser World Timberfund LP for clearance to acquire the Nelson forestry assets of Carter Holt Harvey Limited (CHH).

Commission Chairman Peter Allport said that the Commission expects to make its decision by February 4.

The assets RII Weyerhaeuser proposes to acquire include 28,000 hectares of forest, a nursery, buildings, fire fighting equipment and office equipment.

RII Weyerhaeuser is a joint venture principally owned by Weyerhaeuser Company of Washington State, USA and institutional investors represented by Union Bank of Switzerland (UBS). UBS and a subsidiary of Weyerhaeuser Company are currently the principal shareholders in an existing forestry joint venture in the Nelson/Marlborough area.

CHH is a forestry and wood products company, which is separated into the following business divisions in New Zealand: forests; wood products; pulp paper and tissue; packaging; and building products.

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.

Public copies of the application 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

Phone work (04) 498 0933

Communications Officer Vincent Cholewa

Phone work (04) 498 0920

Commission media releases can be viewed on its web site www.comcom.govt.nz