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High Court injunction to stop Platinum buying OfficeMax

2 November 2017 4:40 AM
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The Commerce Commission today filed proceedings in the High Court at Auckland seeking an injunction to prevent Platinum Equity LLC acquiring OfficeMax Holdings Limited.

The Commission considers that the acquisition would be likely to have the effect of substantially lessening competition in the supply of stationery to large corporate and government customers.

The Commission has applied to consolidate its proceedings with those initiated by Complete Office Supplies. A date for the hearing has yet to be set but is unlikely to be this year.

The Commission is unable to comment further while the case is before the Court.

Platinum did not apply for clearance for its 2017 proposed acquisition of OfficeMax.

Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. The Commission administers a voluntary regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an investigation into a proposed or completed merger under Section 47. If a person breaches Section 47 they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.

Source: scoop.co.nz

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