Ngāi Tahu Tourism has formally withdrawn its application to the Commerce Commission for clearance to acquire the tourism jet boating business trading as "KJet" and related assets (including 100 percent of the shares in Time Tripper Limited) from Kawarau Jet Services Holdings Limited, KJet Limited, and Time Tripper Limited.
The Commission had recently agreed with Ngāi Tahu Tourism an extension until 26 March 2024 by which to make a decision.
Ngāi Tahu Tourism and KJet both supply jet boating services to tourists in Queenstown. Ngāi Tahu Tourism is a wholly-owned subsidiary of Ngāi Tahu Holdings Corporation Limited, which is itself owned by the Ngāi Tahu Charitable Trust. Ngāi Tahu Tourism operates tourism businesses across both Te Ika a Māui (the North Island) and Te Waipounamu (the South Island). Relevant to the application, Ngāi Tahu Tourism operates the Shotover Jet and Dart River Adventures jet boating businesses in Tāhuna (Queenstown) on the Kimiākau (Shotover River) and Dart River.
KJet and Time Tripper Limited are owned by Shaun Kelly and the Skeggs Group. Combined, these businesses operate the KJet tourism jet boating business and the Time Tripper Underwater World experience in Tāhuna (Queenstown). KJet operates its jet boats on the Kawarau River and the Kimiākau (Shotover River).
The Commerce Commission assess mergers using the substantial lessening of competition test. This test examines whether a merger is likely to substantially lessen competition in a market, by comparing the likely state of competition if the merger proceeds with the likely state of competition if the merger does not proceed. A lessening of competition is generally the same as an increase in market power, which is the ability to raise prices and reduce the quality of goods and services that would exist if there was a competitive market.
By law, the Commerce Commission can only clear a merger if it is satisfied that the merger would not be likely to substantially lessen competition in any New Zealand market. The commission will authorise a merger if it believes that the merger would be likely to result in such a benefit to the public that it should be permitted, even though it may substantially lessen competition.
