The Commerce Commission today published a statement of Preliminary Issues regarding Spark New Zealand’s proposed acquisition of TeamTalk.
It’s certainly been a busy time for TeamTalk, as it was shortly afterwards that Vodafone stepped in with a $10 million bid to take a 70 percent stake in TeamTalk’s Farmside business.
The statement from the Commerce Commission delves into the areas of concern within Spark’s hostile takeover of TeamTalk, which are largely centred around the potential for a substantial lessening of competition in the market.
The paper discloses concerns around the merged entity being able to foreclose rivals due to vertical and conglomerate effects, such as refusing to deal with competitors, raising prices it charges competitors or bundling complementary targets.
The issues paper submits that there is only limited overlap between Spark and TeamTalk, including:
The Commission is currently scheduled to make a decision on whether or not to give clearance to the merger by 22 May 2017.