The Commerce Commission has released revised guidelines outlining its approach to assessing businesses’ acquisition, authorisation and merger clearance applications.
Finalised after a public consultation period in March, the proposals have been revised to reflect developments in case law, international experience, and the Commission’s plain English standard.
Occupying an adjudication role in relation to mergers under the Commerce Act, the Commission's stance on mergers and acquisitions reads:
"Mergers can bring many benefits to the New Zealand economy by making it possible for firms to be more efficient and innovative.
"However, some mergers also have the potential to lessen competition to the detriment of consumers."
The Commission says it will clear a merger if it is satisfied that the deal would not be likely to substantially lessen competition in any New Zealand market.
"We will authorise a merger if we are satisfied that the merger would be likely to result in such a benefit to the public that it should be permitted even though it may substantially lessen competition," the guideline reads.
Aiming to complete applications as "quickly and transparently as possible", a full run-down of the guidelines can be found by clicking here