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Commerce Commission clears sand company acquisition

Contributor:
Fuseworks Media
Fuseworks Media

Wellington, June 25 NZPA - The Commerce Commission has cleared Tomarata Sand Ltd to acquire Coastal Resources Ltd relating to sand mining operations at Tomarata in Northland.

Tomarata Sand is owned by Stan Semenoff. Coastal Resources is wholly owned by Kaipara Ltd, which is owned 50 percent by Allan Stuart Drinkrow and 50 percent by Mr Drinkrow and Warwick Allen Mills jointly.

Tomarata is acquiring access to sand to supply the Auckland market and Coastal Resources is looking to divest itself of its operations.

The commission considered the impact on the market for the supply of sand in the Northland region and concluded that while the proposed acquisition would remove one of the few suppliers in the market, on balance, existing competition is likely to provide a competitive constraint on the combined entity.

In addition, the commission considers the main customers of both Tomarata Sand and Coastal Resources would provide constraint through their ability either to self-supply or by fostering the expansion of existing competitors.

Commission chairman Mark Berry said the commission was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in any market.

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