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.  


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.  

The client

Bupa Care Services

Our team

Alex Sundakov

Alex Sundakov

Executive Director

How can we help you?

How can we help you?