ComCom allows PMP to buy APN printing assets
The Commerce Commission has today given clearance to PMP Print to acquire certain heat set printing assets of APN Print NZ.
Commerce Commission chair Dr Mark Berry said 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 market for the provision of heat set printing services.
In assessing whether the proposed acquisition was likely to substantially lessen competition, the commission considered whether, if the proposed acquisition did not proceed, there was a buyer for the business as a going concern.
The commission also considered whether there was real prospect of a third party acquiring the assets on closure of the business and using the assets to compete in the relevant market.
“The commission was satisfied that there was no real prospect of either of
these scenarios occurring,” Dr Berry said.
After a period of sustained losses, APN closed its Manukau heat set printing division in November.
APN was unable to dispose of the division as a going concern and, other than PMP, no party was interested in the printing assets.
So the only alternative to PMP’s acquisition was the exit of APN’s heat set printing assets from the market.
This is the first time that the commission has considered a failing firm argument since it released its Mergers and Acquisitions: Supplementary Guidelines on Failing Firms in October 2009.