Takeover issues made public

The Commerce Commission has published a statement of preliminary issues relating to a clearance application from Eroad Ltd seeking to acquire all shares in Coretex.

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

Both companies provide telematics solutions, which allow commercial fleet owners to analyse and manage how their vehicles and drivers are performing, to customers in New Zealand, Australia and the US.

In New Zealand, Eroad provides broad-ranging solutions to about 91,000 connected vehicles via software and hardware solutions. 

Coretex provides similar solutions here, with a focus on servicing customers in the construction, waste, and food safety and refrigeration sectors.

The commission is now inviting interested parties to provide comments on the likely competitive effects of the proposed acquisition. 

Submissions should emailed to registrar@comcom.govt.nz with the reference “EROAD/Coretex” in the subject line by September 23.

The statement of preliminary issues and a public version of the clearance application are available on the commission’s case register.

The regulator gives clearance to proposed mergers if it is satisfied the merger is unlikely to have the effect of substantially lessening competition in a market.