The Commerce Commission has granted clearance for Queenstown Bungy Limited to acquire Taupo Bungy Limited’s bungy, swing
and associated business in Taupo.
In considering Queenstown Bungy’s application, the Commission’s major focus was on whether Queenstown Bungy’s operations
in Auckland and Queenstown compete closely with Taupo Bungy’s operations in Taupo.
Chair Anna Rawlings said the Commission is satisfied that the acquisition is unlikely to substantially lessen
competition in any New Zealand market. “We consider that while the merging parties both run bungy jump operations, they
are not close competitors as they operate in different regions. So the acquisition is unlikely to materially change the
extent of competition in the market.”
“We also explored whether Queenstown Bungy would likely have entered the central North Island region with its own bungy
operation if the acquisition did not proceed. However, there was no evidence to suggest that Queenstown Bungy would have
started its own operation in the region,” said Ms Rawlings.
A public version of the written reasons will be available shortly on the Commission’s case register.
Background
Queenstown Bungy is a wholly-owned subsidiary of Bungy New Zealand Limited (trading as
AJ Hackett Bungy). Bungy New Zealand Limited has subsidiaries that operate bungy jumps, swing and related businesses in
Queenstown and Auckland.
Taupo Bungy, which is a wholly owned subsidiary of Tourism Holdings Limited, operates a bungy, swing and associated
business in Taupo.
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of
substantially lessening competition in a market.
Further information explaining how the Commission assesses a merger application is available on our website.