The Commerce Commission has granted approval for Trade Me to buy Property NZ, parent company of Homes.co.nz, despite previous concerns.
The commission has authority over major acquisitions which might leave consumers worse off.
In June the commission raised potential concerns that the acquisition might prevent Homes.co.nz from developing into a significant competitor for property listings.
It also had potential concerns that the acquisition could make it harder for other property platforms to set up or grow because it would combine the respective strengths of Trade Me and Homes (i.e listings and property data and information) into a single entity.
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In a statement of unresolved issues in June, the commission said Homes.co.nz had enjoyed substantial growth in the property listings market, and in the property data market, which Trade Me also competed in.
The proposed acquisition could eliminate that potential competition and raise barriers to entry, which would in turn reduce competition. The remaining and potential competition in the market might not be sufficient to replace the constraint lost if Trade Me acquired Homes, the commission said at the time.
But commission chair Anna Rawlings this week said it was now satisfied the proposed purchase was unlikely to substantially lessen competition in any New Zealand market.
We are aware of the harm to competition that can arise when a larger firm buys a growing competitor, and we thoroughly tested whether Homes would develop into a significant competitor. However, evidence received since we issued our Statement of Unresolved Issues has satisfied us Homes is unlikely to become a significant competitor for real estate listings.
We are also satisfied that any benefits that Trade Me may obtain from combining its listings offering with Homes information/data offering would not substantially affect the ability of rival platforms to compete in the market. These rivals include industry-owned Realestate.co.nz and OneRoof, which is owned by NZME, Rawlings said.
The property website, owned by Property NZ, displays listings on its website but its primary focus is providing property information to consumers, such as estimated house values.
Trade Me head of property Alan Clark says a number of services on Homes.co.nz will be made available on Trade Me.
Trade Me Property and Realestate.co.nz have traditionally dominated the listings market.
Trade Me head of property Alan Clark said the deal would benefit property buyers, sellers and agents.
Kiwis interested in property can expect to see a range of Homes.co.nzs services come through on to Trade Me, including property histories, valuations, and home expense estimates.
The two companies would work together to deliver new services in the future, he said.
Trade Me was now working through the final steps of the acquisition and would take full ownership of Homes.co.nz by the end of August.
