LAWFUEL – The NZ Legal Jobs & Newswire – The Commerce Commission has cleared Transpacific Industries to acquire the following business and assets of EnviroWaste Services:
solid waste collection businesses in Blenheim and Nelson;
solid waste collection business in Christchurch;
solid waste businesses in Timaru and Oamaru; and
solid waste collection business in Dunedin.
The clearance is given providing Transpacific Industries divests:
the front-end-load 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.
Commission Chair Paula Rebstock said the Commission was satisfied that the proposed acquisition 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). Nor would that effect or likely effect occur in the national market for the provision of waste management services to customers with businesses in more than one region throughout New Zealand.
“In the Commission’s view, competition from the existing and divested waste businesses, together with that from potential entrants into the relevant waste markets, would constrain Transpacific Industries sufficiently so that there would not be a substantial lessening of competition to the detriment of consumers,” said Ms Rebstock.
Transpacific Industries is the New Zealand subsidiary of a publicly owned Australian waste company which entered New Zealand solid waste markets in 2006 through its amalgamation with Waste Management. EnviroWaste was recently acquired by Australian private equity company, Ironbridge Capital from Fulton Hogan.
A public version of the reasons for the Commission’s decisions will shortly be available on the Commission’s website, www.comcom.govt.nz under Public Registers – http://www.comcom.govt.nz/PublicRegisters/mergersacquisitions-clearances.aspx