TEXT-NZ regulator refuses Sumitomo Forestry bid

(The following statement was released by the Commerce Commission)

WELLINGTON, March 20 - The Commerce Commission has today declined to give clearance to Sumitomo Forestry Co Limited to acquire all of the medium density fibre board (MDF) assets and business operations of Carter Holt Harvey Limited (Building Supplies Division) situated in Rangiora.

The merged entity would only face limited constraint from the remaining existing competitor. The potential for imports would also unlikely constrain the merged entity's pricing.

Commerce Commission Chair Paula Rebstock said that the Commission cannot be satisfied that the proposed acquisitions will not have, or would not be likely to have, the effect of substantially lessening competition in the national market for the manufacture and supply of raw MDF panels.