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Mercury applies to buy Trustpower's retail business

Mercury NZ Limited has applied to the Commerce Commission to seek clearance to acquire Trustpower Limited's retail business.

Source: istock.com

The two power companies are two of the five ‘gentailers’ that operate in New Zealand with the others being Contact Energy, Genesis Energy, and Meridian Energy)

Both Mercury and Trustpower also sell gas to residential customers.

"Under the proposed acquisition, Mercury will acquire Trustpower’s existing retail contracts to supply electricity, gas and fixed and wireless broadband and mobile phone services," the Commerce Commission said in a statement tonight.

"Trustpower has approximately 234,000 customers across New Zealand. The proposed acquisition does not include any of Trustpower’s industrial or commercial electricity customers, nor any of its generation assets."

The Commerce Commission says it will give clearance to a proposed merger if, "we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market".