Hoyts granted clearance to buy Berkeley exhibition

Hoyts granted clearance to buy Berkeley exhibition business

The Commerce Commission has granted clearance for Hoyts Corporation Holdings (NZ) Limited to acquire the Berkeley film exhibition business from Everard Entertainment Limited.

The Commission considered the impact of the acquisition on each of the markets for the exhibition of films to the public on the North Shore of Auckland and the suburbs that comprise the south eastern corridor of Auckland, where Hoyts and Berkeley both operate cinemas.

Commerce Commission Chair Dr Mark Berry said the Commission was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in any of the affected markets.

The Commission considers that a combination of factors would be likely to constrain the merged entity including competition from SkyCity Cinemas, competition from fringe competitors who operate independent art house cinemas and the major film distributors who supply films to exhibitors.

A public version of the written reasons for the decision will be available as soon as practicable on the Commission’s website www.comcom.govt.nz under Public Registers.

Background
Hoyts operates seven cinema complexes in Auckland, Christchurch and Dunedin. Of relevance to this acquisition are two complexes in Auckland – one at Wairau Park and the other at Sylvia Park.

Berkeley operates four cinema complexes in greater Auckland – one each at Mission Bay, Botany Downs, Takapuna and Whangaparaoa.

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