The Commerce Commission has received an application from Evergreen NZ Holdings (Evergreen) seeking clearance or authorisation to acquire 100% of the shares in ACM New Zealand Limited (ACMNZ) from ACM Holdings (NZ) Limited (ACM).
Both Evergreen (through its wholly owned subsidiary, Armourguard Security) and ACMNZ provide cash-in-transit services and precious cargo services throughout New Zealand. Cash-in-transit services include the transport, management and processing of bulk cash for banks, the public sector, financial institutions and retail customers, as well as the replenishment of ATMs and bulk cash storage and management. Precious cargo services involve the secure storage and transport of precious or high value cargo such as foreign currency, bullion and other valuables.
In addition to its cash-in-transit business, Armourguard Security also provides manned guarding and patrol services.
Background
Evergreen is a private unlimited liability company incorporated in New Zealand, wholly owned by Evergreen International NZ, LLC. The ultimate owner of Evergreen is a family trust established by Gavin & Hope Wolfe.
ACMNZ is a wholly owned subsidiary of ACM and is part of the Linfox Group, the ultimate parent of which is LEPGF Pty Ltd.
A public version of the clearance/authorisation application will be available shortly on the Commission's case register.
Assessing a merger authorisation application
Authorisation applications follow a two-step process under the Commerce Act. The Commission must first assess whether the merger would be likely to substantially lessen competition in a market.
We assess whether a merger is likely to substantially lessen competition in a market by comparing the likely state of competition if the merger proceeds, with the likely state of competition if it does not. If we are satisfied that the merger is not likely to substantially lessen competition, then we can clear the merger.
If we are not satisfied that the merger is unlikely to substantially lessen competition, then the second step is to apply a 'public benefit test' to determine whether the merger should be authorised. The public benefit test involves balancing the public benefits and detriments that would, or would be likely to, result from the merger. If we are satisfied that the merger will result in such a benefit to the public that it should be permitted, then we will grant authorisation.
Examples of merger authorisations that the Commission has considered in the past can be found here.
