Reasons for Transpacific Industries being cleared (with divestments) to acquire parts of EnviroWaste Services
The Commerce Commission has released its reasons for granting clearance to Transpacific Industries to acquire certain
South Island solid waste collection businesses of EnviroWaste Services. The clearance was given providing Transpacific
Industries divests back to EnviroWaste:
the front-end-load (FEL) bin solid waste collection businesses and assets in Nelson, Christchurch, Timaru and Dunedin;
and
the privately contracted wheelie bin solid waste collection business in Dunedin.
The Commission’s reasons for granting the clearance include:
Divestment of EnviroWaste’s FEL collection businesses in Nelson, Christchurch, Timaru and Dunedin; and its Dunedin
wheelie bin collection business back to EnviroWaste will ensure that existing competition remains to constrain TPI.
Divestment of certain assets back to EnviroWaste enables EnviroWaste to continue to compete in the national customer
market. By subcontracting a small amount of additional collection services and re-entering selected gantry collection
markets, the Commission considers that EnviroWaste will continue to be a competitive constraint on TPI in the national
customer market.
The Commission considers that competition from the existing and divested waste businesses, together with that from
potential entrants into the relevant markets, will continue to constrain TPI sufficiently so that there would not be a
substantial lessening of competition to the detriment of consumers.
The reasons are available on the Commission's website www.comcom.govt.nz under
PublicRegisters/mergersacquisitions-clearances. Click on the Decision number in the right hand column.
Background
On 31 October 2007 the Commission granted clearance to Transpacific as it was satisfied that the proposed acquisition
(with divestment) would not have the effect, or likely effect, of substantially lessening competition in the local
markets in Nelson, Blenheim, Christchurch, Timaru, Oamaru and Dunedin for collection of solid waste in wheelie bins,
front-end-loaded (FEL) bins and gantry bins (skips).
The Commission was also satisfied that, with the divestment, there would not likely be a substantial lessening of
competition in the national market for the provision of waste management services
ENDS