L. D. Nathan plans for McKenzies not approved

Press, 28 August 1979, Page 18

L. D. Nathan plans for McKenzies not approved

i PA Wellington L. D. Nathan and Com- ■ pany r Ltd, has been advised ■ that jts proposed take-over i of McKenzies (N.Z.) Ltd, has 'not been given the approval iof the . Examiner of i Commercial Practices (Mr A. iE. Monighan). L. D. ‘Nathan, and Mr Monaghan ViU now take their arguments before the Commerce Commission. A successful take-over would givp L. D. Nathan control of McKenzies’ department snores, and manufacturing units throughout New Zealand.

Late last year, L. D. Nathan’s took-over Woolworths (N.Z.) Ltd, and now plans to

combine McKenzies (N.Z.), Woolworths (N.Z.), and other retailing and manufacturing interests. Last month Mr Monaghan advised L. D. Nathan that in his “provisional” view the proposed take-over of McKenzies (N.Z.) Ltd might be against the public interest, and gave the company a further three weeks to justify it. Mr Monaghan now has decided not to approve the take-over, and is passing the matter to the Commerce Commission for consideration. Mr Monaghan has the power to approve takeovers but only the Commission has the power to prevent one.

Mr Monaghan said that he could not discuss his objections at this stage, but he pointed out that the Commerce Act empowered him to consider many effects of take-overs such “as competition, the likely effects on staff, and a lot of other things.”

Asked when the Commission might consider the matter, he said that he was aware that L. D. Nathan was doing everything it could to bring the matter before the Commission as quickly as possible. “A quick conclusion to this matter is obviously in the interests of all concerned,” Mr Monaghan said.