The clearance application from Cardrona Alpine Resort Limited to acquire the assets or shares of Treble Cone Investments Limited was approved by New Zealand’s Commerce Commission today.
In considering Cardrona’s application for clearance, the Commission focussed on whether the price of single day, multi day and season ski passes would increase with the acquisition, including to skiers in the Wanaka region and whether the acquisition would increase the likelihood of coordination on ski pass prices.
Chair Anna Rawlings said the Commission was satisfied that the acquisition is unlikely to lessen competition in any relevant market. The merged entity would be unable to successfully charge higher prices, or reduce the quality of the services offered, due to the high numbers of skiers from outside the region with alternative options.
“We are satisfied that there is unlikely to be a material difference in the extent to which Treble Cone competes, either with its current ownership structure, or with an alternative owner” said Rawlings.
Cardrona announced the purchase of Treble Cone for NZ$7million earlier this year, pending approval. The final approval for this purchase has been waiting on the Commerce Commission who delayed their decision until December 13.
“We’re very excited to receive Commerce Commission approval for the Treble Cone purchase today” says Bridget Legnavsky, Cardrona General Manager.
“We’re now working with Treble Cone Investments Ltd to complete the transaction and more information will be available in the near future.”
The team at Cardrona have big plans for both Cardrona and Treble Cone in the years ahead including expansion into Soho Basin to create the largest ski field in New Zealand.
