WELLINGTON, 3 February 2016 - The Commerce Commission has given clearance for Rheem New Zealand Limited to acquire the business and assets of Peter Cocks (2010) Limited.

Both Rheem and Peter Cocks are involved in the manufacture and supply of hot water heaters to plumbing and building merchants.

The Commission’s consideration of the competitive effects of the acquisition focussed on the wholesale supply of mains pressure cylinders and low pressure cylinders.

Chairman Dr Mark Berry said the Commission is satisfied that the acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the affected markets.

“For mains pressure cylinders, we found that the merged entity would face competition from gas continuous flow units, other existing suppliers of mains pressure water heaters, such as Rinnai, and expansion by potential competitors,” said Dr Berry.

“Similarly, for low pressure cylinders we consider that Rheem would face competition from existing suppliers and that there was scope for smaller suppliers to expand in a timely manner.”

A public version of the written reasons for the decision will be available shortly on the Clearances Register.