The Commerce Commission has agreed to an extension of time to consider the Foodstuffs merger application with the parties. A decision from the Commission, whether to clear the application or issue a Statement of Unresolved Issues, is now due on 21 June 2024.
The latest statement from the Commission states: “Preserving the competitiveness of markets in New Zealand is an enduring priority for the Commission, and we continue to carefully scrutinise the implications of the proposed merger of Foodstuffs North Island and Foodstuffs South Island for suppliers and consumers.”
In considering merger applications, the Commission is able to seek an extension to its decision date when it requires additional time to reach a decision. More information about the merger clearance process is available here.
The case register will be updated in due course.
The Commission explains: “We assess mergers using the substantial lessening of competition test. This test asks whether a merger is likely to substantially lessen competition by comparing the likely state of competition if the merger proceeds with the likely state of competition if the merger does not proceed.
“We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.”
