Public Register No. A2003/01
Date of Application: July 28, 2003
Status: Completed
Date of Commission’s Decision: September 29, 2003
Type of Trade Practice: Business Acquisition
Short description of business carried on in PNG or outside of PNG (if any)
Laga Industries is in the business of manufacturing ice cream among other businesses (such as manufacturing a range of other specialist food products) and has 40% of ice cream market in PNG.
Short description of proposed acquisition; restrictive trade practice
Laga Industries proposed to acquire the business of importing, manufacturing and packaging of ice cream from Tanubada Limited.
Application's Grounds for grant of Authorisation
- Export Potential → Laga Industries is already exporting ice cream to the Solomon Islands and is expected to export to other Pacific Island Nations.
- Import Substitution → Take over of Tanubada assets by Laga Industries provides the greatest potential for import substitution, which has been one of the government’s industrial development policy strategies.
- Increased efficiency → Acquisition of assets by Laga Industries will increase efficiencies in the production and distribution of ice cream.
- Economies of scale → The average costs of production will be reduced in the long run, thus, increasing efficiency in the production and distribution of ice cream.