Investigation Opened Into Alderson Logistics Limited’s Acquisitions Of ABS Carriers And Supa Shavings

The Commerce Commission has opened an investigation into the acquisition of the assets of ABS Carriers Limited (trading as Animal Bedding Supplies/Moorey Animal Bedding) and Supa Shavings Limited by Alderson Logistics Limited and interconnected entities.

ABS and Supa Shavings are the largest suppliers of wood shavings-based animal bedding products in the Waikato/Bay of Plenty region.

The Commission will consider whether competition is likely to have been substantially lessened in any relevant market in breach of section 47 of the Commerce Act. The parties involved did not apply for clearance for either acquisition.

The Commission invites parties who consider they hold relevant information to contact the Commission by email at registrar@comcom.govt.nz with the reference “Alderson/Mooreys/Supa Shavings” in the subject line, no later than 4pm on 9 February 2023.
 

Background

A1 Shavings is a specialist supplier of bulk and baled animal bedding supplies within the Auckland/Waikato region. Persons connected to Aldersons Logistics Limited own 50% of this company.

On 1 April 2022 Alderson Logistics Limited acquired the assets of ABS Carriers Limited, which supplies animal bedding under the “Animal Bedding Supplies” and “Moorey” brands. ABS operates out of three warehouses in Matamata, Putaruru and Karapiro.

In May 2022 Alderson Logistics Limited, via an interconnected entity Supa Shavings (2022) Limited, acquired the assets of Supa Shavings Limited. Supa Shavings has facilities in Otorohanga, Rotorua and Wanganui.

For certain animals, including goats and poultry, wood shavings-based bedding appears to have characteristics that make it superior to other types of bedding.

Section 47 of the Commerce Act prohibits acquisitions that have or are likely to have the effect of substantially lessening competition. The Commission administers a voluntary notification regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an investigation into a proposed or completed acquisition under section 47. If a person breaches section 47 they may be subject to a penalty of up to $500,000 for an individual or, in the case of a firm, the greater of $10 million or three times the value of any commercial gain resulting from the contravention, or if the commercial gain cannot be easily established, 10% of the turnover of the firm.

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