Jump to full article: Dow Jones News Service, 2003-02-05
Author: Stephen Wright, Dow Jones Newswires
Intro: Commission Chairman John Belgrave said the settlement resolves important issues under the former Commerce Act "not least of which was the application of the Act to offshore businesses."
The Commerce Act was updated in mid-2001 with the test of anticompetitive behavior extended to cover acquisitions that strengthen a dominant position. The old Act only prohibited acquisitions that resulted in dominance.
But British American Tobacco argued the New Zealand transaction was just a reconstruction of the two companies which were already under common control following the merger, according to the commission.
The tobacco maker continues to deny any liability under the Commerce Act but as part of the settlement will pay NZ$350,000 towards the regulator's costs.
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