Commission grants clearance to Rafting JV Co to acquire rafting assets
The Commerce Commission has granted clearance for Rafting JV Co to acquire the rafting and sledging assets of Rotorua Rafting, Kaitiaki Adventures, and Kaituna Cascades.
In reaching its decision, the Commission considered the potential impact of the proposed acquisition on competition in the differentiated market for adventure tourism activities in Rotorua.
Deputy Chair Anne Callinan said two of the three Commissioners were satisfied the acquisition is unlikely to substantially lessen competition in any New Zealand market.
“All Commissioners agreed that this was a finely balanced decision. However, on the information provided, the majority are satisfied the proposed merger would not be likely to substantially lessen competition in the differentiated market for adventure tourism activities in Rotorua.
“The merger would bring together the only providers of guided rafting services in Rotorua. Although these rafting providers are close competitors, we are on balance satisfied that the loss of competition resulting from the merger would be mitigated by a range of competitive constraints in aggregate. These constraints include other adventure tourism operators in Rotorua, with whom rafting operators compete to attract customers”.
A public version of the written reasons for the decision will be available on the case register.
Background
The Commerce Commission will give clearance to a proposed merger only if we are satisfied the merger is unlikely to have the effect of substantially lessening competition in a market.
Further information explaining how the Commission assesses a merger application is available.