The Commerce Commission has cleared United Environmental Group Ltd to

acquire the waste collection and treatment business operated by Waste Management

NZ Ltd at Wiri.

Commission Deputy Chairman Peter Allport said that both companies provide a wide

range of waste management services, including the treatment of potentially hazardous

wastes.

While there may be some types of wastes which at present can be treated only by

United Environmental Group and Waste Management before being

disposed of in a landfill, the Commission is satisfied that new entry into the market

for this service is practicable, Mr Allport said.

In the Commission's view, the potential for other companies to enter the market

would constrain United Environmental Group from using its market position to

increase charges or to reduce the standard of its service. Mr Allport said that, in

reaching this view, the Commission had taken account of the likely cost of acquiring

processing plant and the procedures necessary to obtain resource use consents.

Mr Allport added that wider environmental issues which had been raised by some

members of the public in regard to this proposal were not matters within the

Commission's jurisdiction. However, it did not seem likely that any shortage of waste

treatment capacity or capability would result from this proposal.

Media contact: Communications Officer, Vincent Cholewa

Phone work (04) 498 0920, home (04) 479 1432