PROJECTS
Guardian Homes, New Zealand
The problem
A rest-home operator in New Zealand wanted to expand its business by acquiring a competitor’s facilities. If the Commerce Commission was concerned that this would reduce market competition, it could block the purchase. The operator wanted to know how the purchase would affect its market position, and whether the Commission was likely to question the proposal.
How we helped
We determined that the Commission was unlikely to block the purchase. We identified the relevant market, gathered market data, calculated the operator’s market share after the purchase, and compared this to the Commission’s safe harbor for market share. The rest-home operator’s new market share would be 20 percent, well below the Commission’s safe harbor limit of 40 percent.
Impact
Castalia’s advice reassured the rest-home operator that it could go ahead with the purchase, expand its business, and would not have to face questions about lessened competition.
How can we help you?
How can we help you?
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
Sinclair House, 3 Glenside Crescent
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (0)1 85 64 10 22
3B Rue Taylor
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-121
Colombia
Thinking for a better world.
WASHINGTON, DC
+1 (202) 466-6790
1747 Pennsylvania Avenue NW, Suite 1200
United States of America
SYDNEY
+61 (2) 9231 6862
Suite 19.01, Level 19, 227 Elizabeth Street
Australia
AUCKLAND
+64 (4) 913 2800
74D France Street, Newton South
New Zealand
WELLINGTON
+64 (4) 913 2800
Level 2, 88 The Terrace
New Zealand
PARIS
+33 (1) 73 44 26 97
6 Rue Duret
France
BOGOTÁ
+57 (1) 508 5794
Calle 81 #11-08, Piso 5, Oficina 5-127
Colombia
Thinking for a better world.