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Commerce Act 1986

Authorisations and clearances - Business acquisitions

66: Commission may give clearances for business acquisitions

You could also call this:

"Commission can approve business purchases if they don't hurt competition"

Illustration for Commerce Act 1986

If you want to buy a business or some of its assets, you can ask the Commission for permission. You do this by giving them a notice that says you want to make the purchase. The Commission will then look at your notice, just like they do with applications under section 58 and some parts of section 60.

The Commission has 40 working days to decide whether to give you permission or not. They can take longer if they agree with you to do so. If they think the purchase will not reduce competition in the market, they will give you permission.

If the Commission does not think the purchase is a good idea, they will not give you permission. If they do not make a decision within the time limit, it means they have decided not to give you permission. You can get permission for a certain amount of time, usually 12 months, and it might be longer if someone appeals the decision.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM89059.

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Business > Fair tradingGovernment and voting > Government departments
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"The Commission can cancel a clearance if you gave wrong information or something important changes."

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67: Commission may grant authorisations for business acquisitions, or

"Asking permission to buy a business: the Commission can say yes or no"

Part 5Authorisations and clearances
Business acquisitions

66Commission may give clearances for business acquisitions

  1. A person who proposes to acquire assets of a business or shares may give the Commission a notice seeking clearance for the acquisition.

  2. Subsections (1), (2)(a) and (b), (4), and (5) of section 60 shall apply in respect of every notice given under subsection (1) as if the notice was an application under section 58.

  3. Within 40 working days after the date of registration of the notice, or such longer period as the Commission and the person who gave the notice agree, the Commission shall either—

  4. if it is satisfied that the acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in a market, by notice in writing to the person by or on whose behalf the notice was given, give a clearance for the acquisition; or
    1. if it is not satisfied that the acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in a market, by notice in writing to the person by or on whose behalf the notice was given, decline to give a clearance for the acquisition.

      1. If the period specified in subsection (3) expires without the Commission having given a clearance for the acquisition and without having given a notice under subsection (3)(b), the Commission shall be deemed to have declined to give a clearance for the acquisition.

      2. A clearance given under subsection (3) expires—

      3. 12 months after the date on which it was given; or
        1. in the event of an appeal being made against the determination of the Commission giving the clearance, and the determination being confirmed by the court, 12 months after the date on which the determination is confirmed.

          Notes
          • Section 66: substituted, on , by section 23 of the Commerce Amendment Act 1990 (1990 No 41).
          • Section 66(3): amended, on , by section 18 of the Commerce (Cartels and Other Matters) Amendment Act 2017 (2017 No 40).
          • Section 66(3)(a): amended, on , by section 3(1) of the Commerce Amendment Act (No 2) 2005 (2005 No 95).
          • Section 66(3)(a): amended, on , by section 11(2) of the Commerce Amendment Act 2001 (2001 No 32).
          • Section 66(3)(b): amended, on , by section 3(2) of the Commerce Amendment Act (No 2) 2005 (2005 No 95).
          • Section 66(3)(b): amended, on , by section 11(2) of the Commerce Amendment Act 2001 (2001 No 32).