Commerce Commission to consider electricity metering merger

The Commerce Commission has received an application from Vector Limited seeking clearance to acquire Arc Innovations Limited from Meridian Energy Limited.

Vector Limited provides advanced electricity metering services to various electricity retailers through its subsidiaries, Advanced Metering Assets Limited and Advanced Metering Services Limited.

Meridian Energy Limited also provides advanced electricity metering services through its subsidiary, Arc Innovations Limited.

Providing advanced electricity metering services involves supplying advanced meters (or smart meters) together with the necessary communication and information storage systems which enable electricity usage to be monitored and recorded remotely.

Vector Limited and Arc Innovations Limited are two of the main suppliers of advanced electricity metering services. The other main supplier is Metrix Limited, which is a subsidiary of Mighty River Power Limited.

Background

Assessing an application for a merger or acquisition

When considering a proposed merger or acquisition, the Commission must decide whether the competition that is lost in a market when two businesses merge is substantial. We will give clearance to a proposed merger only if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

A fact sheet explaining how the Commission assesses a merger application is available on the Clearances page - http://www.comcom.govt.nz/business-competition/mergers-and-acquisitions/clearances/