Kegstar Seeks Commerce Commission Approval To Acquire Liquidated Konvoy’s Assets
In this article (3)
Kegstar New Zealand is seeking approval from the Commerce Commission to acquire assets from the now-liquidated Konvoy New Zealand. The requested assets include kegs, beacons attached to these kegs or stored in inventory, and New Zealand keg records.
The Background
This acquisition proposal follows Konvoy’s financial struggles, which led to the company entering receivership in March and subsequent liquidation in May. Both Kegstar and Konvoy are suppliers of beer kegs to breweries on a rental basis, in addition to offering logistics services.
Kegstar, owned by MicroStar Logistics, has a broader operational reach than Konvoy, with a presence in Australia, New Zealand, Europe, and the US. In comparison, Konvoy’s operations were limited to Australia and New Zealand.
The Approval Process
The Commerce Commission is set to publicize a version of the application on its website. The regulatory body will only grant clearance for the proposed acquisition if it deems that the transaction will not significantly impact market competition.
Questions & Answers
What is Kegstar New Zealand proposing?
Kegstar New Zealand is seeking to acquire certain assets from Konvoy New Zealand. These include kegs, related beacons, and keg records.
Why is Kegstar interested in Konvoy’s assets?
Konvoy New Zealand recently entered receivership and was liquidated. The company’s assets are now up for acquisition, and Kegstar, also a keg supplier, is interested in expanding its inventory.
What conditions must be met for the deal to proceed?
The Commerce Commission must grant clearance for the acquisition to go forward. The primary condition is that the deal should not substantially lessen competition within the market.