The Commerce Commission has identified areas of overlap in a statement of preliminary issues in its consideration of a takeover of Dunedin packaging company Tecpak Industries by a subsidiary of privately-owned Australian company Pact Group.The statement o
The Commerce Commission has identified areas of overlap in a statement of preliminary issues in its consideration of a takeover of Dunedin packaging company Tecpak Industries by a subsidiary of privately-owned Australian company Pact Group.
The statement of preliminary issues outlines the key competition issues the commission considers will be important in deciding whether to grant clearance.
Both companies manufacture and supply thin-walled plastic containers to the food processing industry.
The commission will consider the processes used, the geographic boundaries of the market, whether large customers, who purchase on a formal contractual basis, and smaller customers, who purchase on an ad hoc basis, may form part of discrete markets.
TEC Projects submitted that although the proposed acquisition would fall outside the commission's safe harbour threshold, the merged entity would continue to face competition from one large competitor, Huhtamaki, and a number of smaller competitors.
Wellington-based investment company Rangatira Ltd is a majority shareholder in Tecpak. Pact Group is ultimately owned by the Geminder family of Victoria.
Tecpak employs 65 to 70 people.
