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Commerce Act 1986

Authorisations and clearances - Business acquisitions

69AC: Variation of undertaking

You could also call this:

"Changing a promise you made about a business takeover"

Illustration for Commerce Act 1986

The Commission can accept a change to an undertaking you gave under section 69A if they think it would not have changed their decision about the business acquisition. You can ask for a change to an undertaking, but you must be the person who gave the undertaking or someone who can act on their behalf. You must also ask for the change at least 20 working days before you need to meet the obligations in the undertaking.

The Commission will tell you about their decision on your application at least 3 working days before you need to meet the obligations in the undertaking. If the Commission accepts a change to an undertaking, it comes into effect on a date they specify, which is on or after the date they accept the change. The change is then considered part of the original undertaking, as stated in section 69A(3), and is part of the clearance or authorisation given for the business acquisition.

When the Commission accepts a change to an undertaking, it is like the change was always part of the undertaking, and it affects the clearance or authorisation they gave for the business acquisition.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1686698.

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Part 5Authorisations and clearances
Business acquisitions

69ACVariation of undertaking

  1. The Commission may, on an application made under subsection (2), accept a variation of an undertaking given under section 69A if it considers that the variation would not have materially affected its decision to give the clearance or grant the authorisation in relation to the acquisition to which the undertaking relates if the variation had been proposed at the time of the decision.

  2. An application for a variation under subsection (1)—

  3. may be made only by the person who gave the undertaking or on whose behalf the undertaking was given; and
    1. must be made no later than 20 working days before the date on which the relevant obligation under the undertaking must be met.

      1. The Commission must notify the person who made the application of its decision on the application no later than 3 working days before the relevant obligation under the undertaking must be met.

      2. A variation under subsection (1)—

      3. comes into force on a date specified in the variation (being a date that is on or after the date on which the variation is accepted); and
        1. is deemed to form part of the undertaking (and, accordingly, is deemed under section 69A(3) to form part of the clearance given or the authorisation granted in relation to the acquisition to which the undertaking relates).

          Notes
          • Section 69AC: inserted, on (applying to every undertaking accepted under section 69A before that date if the period for giving effect to the undertaking has not expired at that time and to every undertaking accepted under section 69A after that date), by section 7(1) of the Commerce Amendment Act 2008 (2008 No 70).