The Commerce Commission has closed its investigation into Bondor New Zealand’s acquisition of the assets of Long Holdings Limited, the Insulation Panel & Door Co Limited and Long Panel Limited (together, the Long Group).
On 25 February 2019, the Commission opened an investigation of the acquisition under section 47 of the Commerce Act. The Commission was concerned that prior to the acquisition, Bondor and the Long Group were close competitors in the manufacture and supply of EPS panels. EPS panels are panels with an expanded polystyrene core which are used in the construction of controlled temperature industrial and commercial buildings.
Bondor had not sought clearance for the acquisition under the Commission’s merger regime.
The Commission considers the evidence it obtained during its investigation did not establish that the acquisition would be likely to result in a substantial lessening of competition. Accordingly, the Commission has decided to close its investigation and take no further action.
The reasons outlining the Commission’s decision will be published on our website shortly.
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.