FedEx has been cleared by the Commerce Commission to acquire all the shares in the New Zealand operation of TNT.
Both provide logistics, freight and small package delivery services.
The Commission considered the competitive effects of the merger on the supply of express international delivery services for small packages and whether sufficient competition would remain from other suppliers in that market.
“The Commission is satisfied that the merger will not have, or would not be likely to have, the effect of substantially lessening competition in the affected markets,” says chairperson Dr. Mark Berry.
“We found that strong competition would continue from DHL Express, the largest market participant, and other competitors such as UPS,” says Berry.
The merger forms part of a global merger that is currently being considered by several other competition authorities.
