CC grants clearance for Queenstown Bungy acquisition

Press Release – Commerce Commission

The Commerce Commission has granted clearance for Queenstown Bungy Limited to acquire Taupo Bungy Limited’s bungy, swing and associated business in Taupo.

In considering Queenstown Bungy’s application, the Commission’s major focus was on whether Queenstown Bungy’s operations in Auckland and Queenstown compete closely with Taupo Bungy’s operations in Taupo.

Chair Anna Rawlings said the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market. “We consider that while the merging parties both run bungy jump operations, they are not close competitors as they operate in different regions. So the acquisition is unlikely to materially change the extent of competition in the market.”

“We also explored whether Queenstown Bungy would likely have entered the central North Island region with its own bungy operation if the acquisition did not proceed. However, there was no evidence to suggest that Queenstown Bungy would have started its own operation in the region,” said Ms Rawlings.

A public version of the written reasons will be available shortly on the Commission’s case register.

Background
Queenstown Bungy is a wholly-owned subsidiary of Bungy New Zealand Limited (trading as
AJ Hackett Bungy). Bungy New Zealand Limited has subsidiaries that operate bungy jumps, swing and related businesses in Queenstown and Auckland.

Taupo Bungy, which is a wholly owned subsidiary of Tourism Holdings Limited, operates a bungy, swing and associated business in Taupo.

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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