Cardrona Alpine Resort in New Zealand has been granted approval from the Commerce Commission to complete the acquisition of Treble Cone skifield near Wanaka.
On Friday, chairwoman Anna Rawlings said in coming to its decision the commission had focused on whether the price of single-day, multi-day and season ski passes would increase with the acquisition. It also considered the extent to which an alternative buyer would invest in, and develop, the Treble Cone skifield. Ms. Rawlings said it was satisfied the acquisition was “unlikely to substantially lessen competition”, reports the Otago Daily Times.
“The merged entity would be unable to successfully charge higher prices, or reduce the quality of the services offered, due to the high numbers of skiers from outside the region with alternative options. We are satisfied that there is unlikely to be a material difference in the extent to which Treble Cone competes,” Ms. Rawlings said.
Cardrona general manager Bridget Legnavsky said the company was “very excited” to receive the approval.
“We’re now working with Treble Cone Investments Ltd to complete the transaction.”
Cardrona’s interest in Treble Cone first came to light in June with a conditional offer, subject to a due diligence process. Cardrona offered $7 million, plus 20 years’ free skiing for some shareholders to buy the Treble Cone skifield.
Treble Cone is a 35-minute drive from Wanaka and marketed as the largest ski area in the South Island, famous for its long, uncrowded groomed runs, reports the Otago Daily Times.