The Commerce Commission has prepared arguments to reject Contact Energy’s takeover of Manawa.
However, the regulator’s initial views did not deter Contact, which told the ASX that the deal was compelling and it was pushing on.
In a Statement of Issues released late Wednesday, the regulator said it was not convinced that the deal would not substantially lessen competition in the electricity market.
The commission’s statement was released after NZX trading closed on Wednesday, with the shares unable to be traded on the NZX on Waitangi Day.
Contact is one of the big four electricity generator-retailers, while Manawa is the fifth largest generator, albeit much smaller than Contact, Mercury, Genesis or Meridian Energy.
