Japan’s pulp and paper company Oji has received green light from the Commerce Commission of New Zealand to acquire 100 percent shares of Carter Holt Harvey Pulp & Paper Limited (CHHPP). The approval will enable Oji to acquire CHHPP’s Kinleith pulp and paper mill, and the Tasman pulp mill in the central North Island.
Mark Berry, Chairman, Commerce Commission, said: “Oji’s mechanical pulp mill and Carter Holt Harvey’s kraft pulp mills produce different types of pulp so the merger is unlikely to result in any change to the competitive situation in respect of the supply of pulp.”
Berry added: “The Commission considers that as pulp logs are a by-product of saw logs, the quantity of pulp logs produced is driven largely by the price of saw logs. As such, the merger is unlikely to result in any reduction in the quantity of pulp logs produced. While the removal of a potential competing buyer for wood chips may lead to a decrease in the prices Oji pays affected suppliers, it is unlikely to lead to a reduction in wood chip output because Oji requires the chips from all of its suppliers to enable its pulp mill to run at capacity.”
Oji announced its plans to team up with Innovation Network Corporation of Japan to acquire CHHPP in April this year.
