New Zealand-Government stop poultry merger.

NEW ZEALAND.

GOVERNMENT BLOCK POULTRY MERGER.

The government of New Zealand Commerce Commission, has published its reasons for blocking the takeover of Brinks poultry by Tegel Poultry.

The main reason for thee government stopping the merger, was that the joint operation would have made the NZ poultry industry less competitive.

Commerce Commission Chair Paula Rebstock, said the Commission could not be satisfied that the proposed acquisition, would not have or be likely to have the effect of substantially lessening competition in four markets.

The proposed acquisition would reduce the number of large chicken processors, from three to two in the country

There is a similar situation evolving in Australia, with the three main poultry processors and the Australian government will make a decision in February.