Statement Of Preliminary Issues Released For Elgas’ Proposed Acquisition Of Vector’s LPG Assets And Liquigas Shares

The Commerce Commission has published a statement of preliminary issues relating to an application from Elgas Limited seeking clearance to acquire 60.25% of the shares in Liquigas Limited from Vector Investment Holdings Limited, as well as the assets of On Gas Limited from Vector Limited.

Both Elgas and On Gas supply LPG in cylinders and in bulk to a range of wholesale and retail customers across New Zealand. Liquigas provides distribution, storage and logistical services for LPG suppliers, such as Elgas and On Gas, across New Zealand.

The statement outlines the key competition issues that the Commission considers important in deciding whether or not to grant clearance to the proposed acquisition.

The Commission invites interested parties to provide comments on the likely competitive effects of the proposed acquisition. Submissions can be sent by email to registrar@comcom.govt.nz with the reference ‘Elgas/Vector’ in the subject line. Any submissions should be received by close of business on 23 September 2024.

The Commission is currently scheduled to make a decision on the application by 17 October 2024. However, this date may be extended as the investigation progresses.

The Statement of Preliminary Issues and a public version of the application can be found on the Commission’s case register.

Background

We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

Further information explaining how the Commission assesses a merger application is available on our website.

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