ComCom delays merger decision

The Commerce Commission has further extended their timeframe on handing down a decision as to whether Trade Me can acquire Motorcentral.  The ComCom decision is now due Wednesday 28th February, 2018. Regarding the extension, Mena Eskander, director of Motorcentral says that, "the Commerce Commission wants to be comfortable with the decision they make. There is a process they have to go through and it can take a while to reach a decision.” This is the second time a decision on the merger has been delayed, ComCom couldn't reach a conclusion in October citing, “ we are continuing to investigate the issues set out in the Letter of Issues published in relation to this merger clearance application.” Timeline of events: July 11, 2017: Trade Me entered into a conditional agreement to purchase cloud-based dealer platform Motorcentral, pending approval from the Commerce Commission.  Director Mena Eskander said of the merger, that Motorcentral has been approached in the past, but it was with Trade Me that he felt satisfied an acquisition would positively impact the key sectors of the business, and the Motorcentral team will remain with the company. Head to our July issue for a more in-depth discussion about what the two companies have to offer one another and what the acquisition means going forward.  July 25, 2017: The Commerce Commission published a statement of preliminary issues regarding the sale of web-based DMS Motorcentral to Trade Me, and invited interested parties to comment on the merger. In its statement of preliminary issues, the Commerce Commission said it will be focusing on whether the sale will reduce competition in the industry, and if the merged businesses would be able to foreclose rivals and render them less able to compete in the sector. October 30, 2017: Motorcentral launched a new website, www.needacar.co.nz, which allows customers to search more than 22,000 cars throughout New Zealand. October 31, 2017: The Commerce Commission delayed their decision on whether Trade Me is clear to acquire Limelight Software Ltd, trading as Motorcentral. December 21, 2017: The Commerce Commission requests further extension until 28 February, 2018.