Press Release – Commerce Commission
The Commerce Commission has cleared VRPS Limited, a subsidiary of Visy Industries Australia Pty Limited (Visy), to acquire certain businesses and assets of HP Industries Holding Limited and HP Industries (New Zealand) Limited. The businesses and assets …Visy granted clearance to acquire HP Industries
The Commerce Commission has cleared VRPS Limited, a subsidiary of Visy Industries Australia Pty Limited (Visy), to acquire certain businesses and assets of HP Industries Holding Limited and HP Industries (New Zealand) Limited. The businesses and assets relate to PET bottles, plastic containers, and plastic closures.
Commerce Commission Deputy Chair Sue Begg said the Commission was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in any of the affected markets.
The Commission is of the view that if the merged entity tried to impose an unjustified price increase, customers would have the option of switching to an alternative supplier in the respective markets. These suppliers have spare capacity and could quickly increase their current level of production.In addition, large customers would have the option of self supplying their requirements if provided incentives by the actions of the merged entity.
A public version of the written reasons for the decision will be available soon on the Commission‘s website at www.comcom.govt.nz/clearances-register
Polyethylene terephthalate (PET) is a common resin used in the manufacture of plastic products.
Visy is a privately owned packaging and recycling company with operations in Australia, New Zealand and Asia. In New Zealand, Visy supplies a number of packaging products including a range of PET beverage bottles.
HP is also a plastic packaging manufacturer with operations in New Zealand and Australia. HP supplies a range of products including PET bottles, plastic containers, and plastic closures. HP is currently in receivership.
Assessing an application for a merger or acquisition When considering a proposed merger, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
A fact sheet explaining how the Commission assesses a merger application is available for download at http://www.comcom.govt.nz/mergers-and-acquisitions-merger-assessment-fact-sheet/