Daiken granted clearance to acquire Donghwa

The Commerce Commission of New Zealand has granted clearance for Daiken New Zealand to acquire 100 per cent of the shares in Dongwha New Zealand Limited.

Daiken, which manufactures and supplies MDF from a plant it operates in North Canterbury, sought clearance to acquire Dongwha, which manufactures and supplies MDF from a plant it operates in Southland.

In making its decision, the Commission considered competition issues in the national market for the manufacture and supply of raw MDF panels.

Deputy Chair Sue Begg said the Commission is satisfied that the merger would not substantially lessen competition in the relevant market.

“We were satisfied on the evidence before us that the market is currently delivering competitive outcomes and that the proposed acquisition is not likely to substantially change that situation,” Ms Begg stated.