PHOTO: Farmlands Real Estate
Press Release: Commerce Commission
18 December 2019
Release No. 68
Commission grants clearance for Property Brokers application to acquire Farmland’s real estate business on the West Coast
The Commerce Commission has granted clearance for Property Brokers Limited to acquire the West Coast real estate business and property management business of Farmlands Real Estate Limited and Farmlands Real Estate Property Management Limited (together Farmlands Real Estate).
The Commission’s consideration of the application focused on competition issues in markets for the supply of real estate and property management services in the West Coast region of the South Island.
Chair Anna Rawlings said the Commission is satisfied that the acquisition is unlikely to substantially lessen competition in any New Zealand market.
“We consider that the presence of competing suppliers in the relevant markets with the ability to expand is likely to constrain the ability of Property Brokers to raise prices or reduce service quality,” Ms Rawlings said.
“In addition, we considered whether the acquisition could affect competition by enabling Property Brokers to coordinate with its competitors. However, we are satisfied on the evidence before us that the proposed acquisition is unlikely to make coordination in the relevant markets more likely.”
A public version of the written reasons for the decision will be available on the Commission’s case register in the near future.
Background
Property Brokers offers real estate services from offices throughout New Zealand. It provides residential, lifestyle, rural and commercial real estate, and property management services. On the West Coast of the South Island, Property Brokers operates from offices in Westport, Greymouth and Hokitika.
Farmlands Real Estate is a fully owned subsidiary of Farmlands Co-operative Society Limited. Farmlands Real Estate also offers residential, lifestyle, rural and commercial real estate, and property management services from offices throughout New Zealand. On the West Coast of the South Island, Farmlands Real Estate operates from offices in Westport and Hokitika.
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
Further information explaining how the Commission assesses a merger application is available on our website.
ends