Statement Of Preliminary Issues Released For Can Plan / Nelmac Clearance Application

The Commerce Commission has published a statement of preliminary issues relating to an application from Can Plan Nelson Limited (Can Plan) to acquire certain assets of Nelmac Limited’s (Nelmac/s) waste collection business, which trades as Betta Bins. These assets include two Side Loader trucks, one Rear Loader truck, and pre-paid wheelie bins, large bins and “pay-as-you go” rubbish bags currently in circulation. The proposed transaction does not involve the Betta Bins recycling business.

The statement outlines the key competition issues that the Commission considers important in deciding whether or not to grant clearance to the proposed acquisition.

The Commission invites interested parties to provide comments on the likely competitive effects of the proposed acquisition. Submissions can be sent by email to registrar@comcom.govt.nz with the reference “Can Plan/Nelmac” in the subject line. Parties should provide a public version of their submission at the same time for publication on the Commission’s case register. Any submissions should be received by close of business on 9 February 2021.

The Commission is currently scheduled to make a decision on the application by 9 March 2021. However, this date may be extended as the investigation progresses.

The Statement of Preliminary Issues and a public version of the application can be found on the on the Commission’s case register.

Background

Can Plan collects waste from residential customers that use its “pay-as-you-go” rubbish bags and pre-paid wheelie bins. Can Plan also collects waste from commercial customers that use larger bins, and provides a skip hire service and a fortnightly green waste collection service. It provides these services in the Nelson-Tasman area, including Nelson City, Stoke, Richmond, Mapua, Brightwater, Wakefield and Motueka.

Betta Bins is the waste collection division of Nelmac, which is owned by Nelson City Council. Betta Bins serves residential customers that use its “pay-as-you-go” bags, bin liners, and wheelie bins, and offers large bin collection services for commercial customers. Like Can Plan, Betta Bins provides a fortnightly green waste collection service. Betta Bins serves customers located in Nelson City, Stoke, and Richmond.

The Commission 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.

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