Media Releases

Investigation opened into Fulton Hogan's proposed acquisition of Stevenson Group

14 June 2018

The Commerce Commission has opened an investigation into Fulton Hogan Limited’s proposed acquisition of Stevenson Group Limited's construction materials business.

The Commission will consider whether the acquisition would be likely to result in a substantial lessening of competition in any relevant market in breach of section 47 of the Commerce Act. The acquisition is due to be completed by 31 July 2018. The parties have not applied for clearance for the acquisition.

Fulton Hogan is one of New Zealand’s largest roading and infrastructure construction companies. The initial focus of the investigation will be on the potential competitive effects of the proposed acquisition on quarry markets in Auckland and North Waikato. However, the investigation will also consider whether any competitive effects arise from Fulton Hogan’s proposed acquisition of Stevenson’s concrete plants, transport, laboratory services and associated plant and equipment.

The Commission invites parties who consider they hold relevant information to contact the Commission by email to registrar@comcom.govt.nz with the reference Fulton Hogan/Stevenson in the subject line no later than 4pm Friday 29 June 2018.

Background

Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. The Commission administers a voluntary regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an investigation into a proposed or completed merger under Section 47. If a person breaches Section 47 they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.