Skifield company to buy neighbour

A mega merger of two popular Central Otago skifields is looming after the Commerce Commission granted Cardrona permission to buy the neighbouring Treble Cone ski area.

Cardrona Alpine Resort Ltd applied to the commission on September 5 for clearance to purchase Treble Cone Investments Ltd. The sale will add to the assets of Cardrona, which already owns New Zealand’s largest skiable area after a deal to combine with the neighbouring private Soho Basin ski area.

Cardrona general manager Bridget Legnavsky said the company was very excited to get the approval.

‘‘We are now working with Treble Cone Investments Ltd to complete the transaction and more information will be available in the near future.’’

In a statement yesterday, the commission said it focused on whether the price of ski passes would increase with the acquisition and whether there would be an increased likelihood of co-ordination on ski pass prices.

The commission also considered the extent to which an alternative purchaser would invest in, and develop, the Treble Cone skifield.

Commission chairwoman Anna Rawlings said it was satisfied the acquisition was unlikely to substantially lessen competition in any relevant market.

‘‘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,’’ she said.

In its application to the commission, Cardrona argued market competition would not be lessened because the Cardrona and Treble Cone skifields offered different types of terrain and catered for differing levels of skill and experience.

It said the merged firm would compete closely with NZSki, which operates the Coronet Peak and The Remarkables skifields near Queenstown, the Mt Hutt skifield near Methven in Mid-Canterbury; and with Ruapehu Alpine Lifts Ltd, which operates the Whakapapa and Turoa skifields in the central North Island.

A significant number of skiers on New Zealand skifields were from overseas so the company was also in competition with the offerings of overseas skifields, Cardrona argued.