INDEPENDENT NEWS

James Hardie cleared to acquire Long International

Published: Tue 19 Dec 2000 08:48 AM
Media Release
Issued 18 December 2000/136
Commission clears James Hardie to acquire Long International
On Friday the Commerce Commission cleared James Hardie NZ Ltd to acquire all the assets of Long International Ltd.
Both companies manufacture polystyrene and polystyrene insulated panels used for building cold stores and other controlled temperature buildings. James Hardie has factories in Auckland and Christchurch and Long International in Christchurch.
Commission Chairman John Belgrave said that the Commission was satisfied that, should the proposal go ahead, James Hardie would not acquire or strengthen a dominant position in either the South Island market for the manufacture of polystyrene blocks and sheets, or the South Island market for the manufacture of polystyrene insulated panels for use in controlled temperature buildings.
If the proposal goes ahead, James Hardie will acquire a large market share in Canterbury in both markets-outside the safe harbours described in the Commission's Business Acquisitions Guidelines.
However, the Commission is satisfied that barriers to the entry of new competitors into both markets are particularly low. The Commission was also able to identify several potential competitors that would be able to quickly enter the markets should James Hardie raise its prices in the South Island. The Commission also noted that there is a history of successful entry into the equivalent markets in the North Island. The Commission considers that this potential for entry will constrain James Hardies prices.
The Commerce Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market.
Parties can apply for a clearance, which the Commission will give if it is satisfied that dominance is not acquired or strengthened.
The guidelines the Commission has published state that acquisitions resulting in market share of up to 40 percent, or up to 60 percent if another competitor has 15 percent, are unlikely to result in dominance.
Where an acquisition results in market shares outside these safe harbours, then the Commission looks at other competition issues, including the ability of competitors to expand, the likelihood of new entry to the market and the countervailing power of buyers.
Media contact: Commerce Act Manager Geoff Thorn Phone work (04) 498 0958,
Senior Advisor Communications Vincent Cholewa Phone work (04) 498 0920,
Commission media releases can be viewed on its web site www.comcom.govt.nz

Next in Business, Science, and Tech

Services lead GDP growth
By: Statistics New Zealand
Letter to Immigration Minister From Early Harvesting Growers
By: One Plus One
Scientists discover one of world’s oldest bird species
By: Canterbury Museum
Helping regions fill skills shortages and Kiwis come first
By: New Zealand Government
Report: Govt Inquiry into Auckland Fuel Supply Disruption
By: Inquiry into The Auckland Fuel Supply Disruption
NZ economy grows 0.5% in June quarter, beating expectations
By: BusinessDesk
Don’t blame President Trump for slowing economy
By: New Zealand National Party
Labour's big government economic policies continue to fail
By: ACT New Zealand
Kiwi economic growth slows. We need fiscal caffeination
By: Kiwibank
Weakening economic growth shows need for tax cuts
By: New Zealand Taxpayers' Union
Employers pen open letter to Minister in ‘desperation’
By: New Zealand National Party
Dismissive Minister out of touch with reality
By: ACT New Zealand
Labour issues in booming sector
By: Bayleys
Migrant Workers Association criticises work visa overhaul
By: RNZ
More detail needed on migrant worker policy
By: BusinessDesk
View as: DESKTOP | MOBILEWe're in BETA! Send Feedback © Scoop Media