Commission concerned that consortium has not yet asked for approval
23 September 1994
The Commerce Commission is becoming concerned that it has not yet been asked to authorise a consortium bid for Weddel Crown's meat processing plants.
"We are concerned at how far a bid by a consortium of meat companies is proceeding without authorisation being sought," Commission Chairman Alan Bollard said today.
Commission staff have met with some of the parties involved. The Commission believes it is important that all those involved, or who might become involved, in this or any other bid which might also need Commission approval are aware of the processes which the Commission must go through.
The Commission has told the consortium its view is that an authorisation is required under section 58 of the Commerce Act before the consortium could purchase the plants. Such authorisation would not be for a business acquisition, but for the potentially anti-competitive nature of the consortium.
An application must be made within 15 working days of any arrangement being entered into, otherwise the Commission is prevented by law from considering the matter.
The Commission will make a public statement as soon as an application is received. It will release details of the proposal. However, confidential material will not be released as long as confidentiality does not interfere with a full investigation.
Interested parties are entitled to have their views considered by the Commission before it reaches its decision.
The Act requires the Commission to decide on a business acquisition authorisation within 60 working days. It places no limit on how long the Commission has to consider authorisation of a potentially anti-competitive business practice.
To give the wide range of interested parties an opportunity to make submissions, and later time to comment on the preliminary decision which will be part of the Commission's process, the Commission has set a timetable of 60 working days. A 60 working day period from today would end on December 19.
"Given the likely complexity of this matter the Commission believes that it is unlikely it can be properly dealt with in a shorter period," Dr Bollard said.
Anyone recognised by the Commission as an interested party can call for a conference of all interested parties to discuss an application for authorisation.
Steps in the timetable for considering authorisation of a potentially anti-competitive practice are:
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By day 3 |
Identify interested parties, send them necessary documents, publish public notices |
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Day 15 |
Deadline for submissions on public notice |
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Day 20 |
Commission staff present draft report to the Commission |
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Day 25 |
Commission releases draft determination (preliminary decision) |
|
Day 30 |
Pre-conference meeting with interested parties to identify issues to be discussed |
|
Day 35 |
Deadline for interested parties to call a conference Deadline for submissions on draft determination, submissions are circulated to interested parties (confidential material may be deleted) |
|
Day 40 |
Deadline for experts employed by interested parties to make submissions, submissions are circulated to interested parties (confidential material may be deleted) |
|
Day 48 |
Deadline for interested parties, all of whom will have by then seen each others submissions, to file memoranda identifying issues and areas of difference |
|
Day 50 |
Conference, if one is to be held |
|
Day 55-60 |
Final determination issued |
Media contact:Vince Cholewa, Communications Officer
Phone work (04) 471 0180, home (04) 479 1432
