Concrete Group cleared to acquire Drymix
The Commerce Commission recently granted clearance for Dunlop Drymix Limited, a subsidiary of the Concrete Group Limited, to acquire the assets and business of six companies that collectively trade in New Zealand as Drymix.
According to the New Zealand Commerce Commission, each of the Drymix companies were placed into receivership in mid-2020. Division Chair Dr Derek Johnston said that the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market.
Central to the Commission’s decision was its assessment of what would happen to Drymix if it was not sold to the Concrete Group, with the Commission considering whether there was a realistic prospect that Drymix would be sold to an alternative purchaser who would supply bagged concrete and mortar products in competition with the Concrete Group.
“After careful consideration, the Commission is satisfied that Drymix would not be sold as a going concern. We consider that the receiver would close Drymix down and sell its assets individually. The assets, primarily land and bagging machinery, would not be used to compete against Concrete Group. Given this, we are satisfied that the proposed acquisition is unlikely to substantially lessen competition,” Dr Johnston said.
A public version of the written reasons for the decision will be available on the Commission’s case register in the near future.
Concrete Group Limited (under the ‘Cemix’ brand) and Drymix both manufacture and supply a range of bagged concrete and mortar products. Designed for use in DIY and projects with small amounts of concrete needed and sold nationwide in large building product stores, including Mitre 10 NZ and Bunnings, hardware stores and other building products outlets.