Reward is an Australian company that supplies food service solutions in Australia and is a member of the ECF Group, an international distribution company specialising in the supply of food service solutions.
ECF Group operates in New Zealand through Burns & Ferrall Ltd, trading as Reward NZ and Safco Ltd.
Southern Hospitality is a New Zealand supplier to the New Zealand hospitality and food service industry.
Established in 1989 in Dunedin, it had 12 showrooms nationwide and described itself as a "a major player in the catering and hospitality industry providing a multitude of services and products", the commission said.
It was established by Hyam Hart and Roger Fewtrell.
The commission raised potential concerns about the likely competitive effects of the proposed acquisition on the supply of commercial kitchen equipment on a standalone basis, and on the supply of "project" services to fit out a new or refurbished kitchen, where design, equipment supply and fit out would often
be carried out as a single service.
However, after further investigation, chairman Dr John Small said the commission was satisfied the proposed acquisition was unlikely to substantially lessen competition in any New Zealand market.
"Reward and Southern Hospitality are the two largest resellers of commercial kitchen equipment in New Zealand.
"We initially had concerns that the acquisition would enable the merged entity to raise prices or lower quality to customers.
"However, evidence received since our statement of issues has satisfied us that this is unlikely.
"There are many other resellers of commercial kitchen equipment in New Zealand (on both a standalone basis and as part of a ‘project’)."
Commission inquiries had indicated several competitors were either already planning to expand, or would expand if prices rose.
