ComCom clears cash-handling merger, dismisses competition fears

(Source: Bigstock)

Evergreen NZ Holdings has secured clearance from the Commerce Commission to acquire ACM New Zealand from ACM Holdings.

The commission noted it assessed the competition in the wholesale and retail cash-in-transit services before reaching its decision.

“After careful consideration of all of the relevant factors, the commission is satisfied that the proposed acquisition is unlikely to substantially lessen competition when compared to the situation if the proposed acquisition did not proceed,” said John Small, Commerce Commission chair.

Small noted that the company and ACM both incurred large cash losses and both entities are unlikely to continue to provide cash-in-transit services in the country without the proposed acquisition.

“ACM is projected to continue to suffer losses and we consider that ACM would likely exit the relevant markets in the short term,” said Small.

“Given this, we are satisfied that there would not be a substantial loss of competition or material impact on the price and/or the quality of cash-in-transit services with the proposed acquisition.”

Moreover, Small said the proposed acquisition may benefit the public through an ongoing stable supply of cash-in-services to the market and the orderly transition from two cash-in-transit providers to one.

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