Pact Group granted clearance to acquire Viscount Plastic NZ subject to a divestment undertaking
10 May 2012
The Commerce Commission has cleared Pact Group Pty Limited to acquire the plastic pails business of Viscount Plastic (NZ) Limited. The clearance is given on the basis of a divestment undertaking - that Pact Group will sell certain assets that currently produce plastic pails to a third party.
Pact Group and Viscount are the two largest suppliers of plastic pails in New Zealand. Taking into account the proposed divestment by Pact Group, the Commission is satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the national plastic pails market.
Commerce Commission Chair Dr Mark Berry said the Commission is satisfied that the divestment of the plastic pail making assets to an independent competitor will be sufficient to remedy the competitive harm.
A public version of the written reasons for the decision will be available soon on the Commission's website at www.comcom.govt.nz/clearances-register
Pact Group Pty Limited supplies plastic pails and many other plastic products in New Zealand through its subsidiaries: VIP Packaging (NZ) Limited, Alto Packaging Limited and Tecpak Industries Limited.
Viscount also supplies plastic pails and other plastic products from its Auckland-based plant. It is the largest plastic pail supplier in New Zealand. It is ultimately owned by LINPAC Mouldings Limited, a global packaging company based in the United Kingdom.