NZ Commission declines to give Sumitomo clearanceFriday 28 Mar 2008 The Commerce Commission has declined to give clearance to Sumitomo Forestry Co Limited - owner of Nelson Pine - to acquire all of the medium density fibre board (MDF) assets and business operations of Carter Holt Harvey Limited (Building Supplies Division) situated in Rangiora. The Rangiroa factory employs about 200 staff and makes MDF under the Customwood brand for building products, including cabinetry, furniture and joinery.The Commerce Commission have said the merged entity would only face limited constraint from the remaining existing competitor, Dongwha Patinna NZ Ltd. The potential for imports would also unlikely constrain the merged entity's pricing. In an article in the Christchurch Press, MD of Nelson Pine, Murray Sturgeon said the Commerce Commissions decision was not a surprise because the Australian Competition and Consumer Commission had declined Sumitomo's application to buy the Carter Holt panel board assets in Australia. Commerce Commission Chair Paula Rebstock said that the Commission cannot be satisfied that the proposed acquisitions will not have, or would not be likely to have, the effect of substantially lessening competition in the national market for the manufacture and supply of raw MDF panels. Public versions of the written reasons for the decision will be available as soon as practicable on the Commission's website, www.comcom.govt.nz, under Public Registers. |
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