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Tougher competition rules introduced in 2001 have seen a dip in the number of firms asking for merger clearances from the Commerce Commission.
A law firm survey, out today, shows there were 23 applications for clearance considered by the commission in 2003, with 17 applications granted.
The biggest takeover last year was
ANZ Bank's purchase of National Bank from Lloyds TSB Group for A$5.4 billion ($6.21 billion), giving it a leading 37 per cent share of New Zealand's banking market.
The total number of applications in 2003 was down from 37 in 2001 and 28 in 2002, the Dominion Post reported. Some companies tried to get competition clearance in 2001 before the law change, so that was a "big year", said Phillips Fox corporate lawyer Mark Williamson.
"There is the possibility that due to the stricter regime some companies are simply not proceeding with proposed mergers rather than wasting time applying for a clearance that will almost certainly be declined," he said.,
But that was not the Phillips Fox experience, he said.
"I believe it is more likely that the lesser number of clearances flow from a small reduction in merger and acquisition activity levels during 2002 and 2003."
Only 11 companies had sought merger clearance from the Commerce Commission in the first six months of 2004. One or two applications are turned down each year.
Last year, the only application declined was the acquisition by fixture and fastening company MiTek of the assets of Pryda and Reid New Zealand, the operating divisions of Nylex New Zealand.
- NZPA
