Issued 14 June 2018
Release no. 140
Investigation opened into Fulton Hogan's proposed acquisition of Stevenson Group
The Commerce Commission has opened an investigation into Fulton Hogan Limited’s proposed acquisition of Stevenson Group
Limited's construction materials business.
The Commission will consider whether the acquisition would be likely to result in a substantial lessening of competition
in any relevant market in breach of section 47 of the Commerce Act. The acquisition is due to be completed by 31 July
2018. The parties have not applied for clearance for the acquisition.
Fulton Hogan is one of New Zealand’s largest roading and infrastructure construction companies. The initial focus of the
investigation will be on the potential competitive effects of the proposed acquisition on quarry markets in Auckland and
North Waikato. However, the investigation will also consider whether any competitive effects arise from Fulton Hogan’s
proposed acquisition of Stevenson’s concrete plants, transport, laboratory services and associated plant and equipment.
The Commission invites parties who consider they hold relevant information to contact the Commission by email to
registrar@comcom.govt.nz with the reference Fulton Hogan/Stevenson in the subject line no later than 4pm Friday 29 June
2018.
Background
Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. The
Commission administers a voluntary regime that allows firms to apply for clearance if they consider their planned
acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an
investigation into a proposed or completed merger under Section 47. If a person breaches Section 47 they may be subject
to a penalty of up to $500,000 for an individual or $5 million for a firm.
ends