By LIBBY MIDDLEBROOK
Ruapehu Alpine Lifts' bid for Turoa Ski Resort has been accepted, despite the company failing to gain clearance from the Commerce Commission last year for the acquisition.
Earlier this week Turoa's receiver, PricewaterhouseCoopers, agreed to sell the field to Alpine, which owns and runs the neighbouring Whakapapa Ski Field.
The
purchase price is understood to be between $5 million and $10 million.
Though the commission turned down Alpine's application because of market dominance concerns associated with joint ownership of Ruapehu's two main ski areas, Alpine general manager Dave Mazey said the company was confident of gaining authorisation.
He said the commission - which prohibits business transactions that result in market monopolies - only looked at market dominance issues when considering its initial clearance application.
Alpine's second application would ask the commission to consider other issues such as whether the public benefits of the acquisition would outweigh the negatives.
"We are very confident that we can illustrate that the benefits of this acquisition far outweigh the down-side for New Zealanders.
"There are a range of benefits we could offer the market quite quickly from having the combined operation," Mr Mazey said.
"We'll certainly generate more business than just promoting Whakapapa or Turoa."
Alpine's application is yet to be lodged with the commission.
The ANZ bank put the debt-laden Turoa Ski Resort into receivership after several years of poor snowfall and problems caused by the Mt Ruapehu eruptions.
The field is estimated to have around $7 million in debt and it remains uncertain whether all creditors will be paid.
Commission spokesperson Vince Cholewa said though it was not common for companies to gain authorisation after previously being turned down, it was not unheard of.
Mr Mazey said possible plans for a joint Turoa and Whakapapa operation included guided skiing tours between the two fields and tickets which could be used at either field.
He said with two skifields on offer Mt Ruapehu would be able to attract more overseas visitors, which at present made up only 4 per cent of business.
Overseas visitors account for 60 per cent of South Island ski industry turnover.
Alpine takes over ownership of the field at the end of October.
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