Pacifica Seafoods Ltd is one of New Zealand's largest privately owned aquaculture producers and exporters, processing inshore fish species, mussels, salmon and Bluff and Pacific oysters.
Sanford shares were unaffected yesterday and traded about $4.63.
In a brief statement, Commerce Commission chairman Dr Mark Berry said the commission's investigation focused mainly on the farming and processing of greenshell mussels in the South Island, but also considered the production of king salmon as well as Pacific oysters.
Dr Berry said the commission was satisfied "there would be sufficient competitive constraint provided by existing competitors in respect of all of these products".
It was understood, but not confirmed, that Sanford had made an offer to Skeggs which was under consideration.
In a statement to the stock exchange yesterday, Sanford reiterated the clearance "does not imply any agreement to purchase Pacifica".
Pacifica is Seafoods' group of companies.
Skeggs Group chief executive David Skeggs was unavailable for comment yesterday.
Skeggs chairman Ian Farrant was contacted and said while "expressions of interest" had been sought for a 49% stake in the aquaculture assets, "no sale has taken place".
He declined to comment on whether an offer had been made, saying only that Sanford had sought Commerce Commission approval in September because of the extent of the assets in question.
This week Minister of Conservation Kate Wilkinson officially launched the Southern Discoveries Milford Discovery Centre and Milford Deep Underwater Observatory.
The observatory is a $500,000 development between Skeggs' Southern Discoveries Ltd, the Department of Conservation and the Fiordland Conservation Trust, where visitors can descend more than 10m below the surface of Milford Sound to view marine life in its natural habitat.
In late October, Queenstown Lakes District Council commissioner David Whitney ruled the Skeggs Group's plans for a new tourist venture on Lake Wakatipu would be subject to public scrutiny.
Mr Whitney said Southern Discoveries' proposal to operate the 9m-tall, 200-passenger tourist boat Lady of the Sounds , which would replace the smaller 14.5m, 48-passenger Queenstown Princess catamaran, would have a "significant adverse effect", blocking views from Queenstown Bay.
The proposal is to run daily boat trips to Mt Nicholas Station offering cycling to the Von Valley and Mavora Lakes.
Mr Skeggs described the decision at the time as "unfavourable", but was yet to make a decision on whether to proceed with the proposal.
In June 2008, the Skeggs Group bought Milford Sound Red Boats from listed Tourism Holdings Ltd for $17.3 million, including its high-profile Red Boats passenger service operating in Milford.
The Skeggs group was established by Sir Clifford Skeggs in 1952, and employs more than 500 people with an annual turnover of more than $125 million.
Export markets have included about 30 countries, from Australia, Europe, the United Kingdom, United States and Africa.
At the time of the Milford purchase, Mr Skeggs said the purchase was not funded by other asset sales or debt funding and fitted well with the group's other predominantly southern business interests.
The Milford assets included five day-trip Milford Sound Red Boats, the Milford Deep Underwater Observatory, the Blue Duck Cafe and a 49% shareholding in the infrastructure organisation Milford Sound Development Authority (MSDA).
MSDA owns the Milford Sound terminal and wharves and other infrastructure assets, with tourism rival Real Journeys and THL each having 49%, and the 2% balance held by the Southland District Council.
CASTING THE NET
49% FOR SALE
The Pacifica Seafoods Group is the aquaculture operation of the Skeggs Group of companies, involved in mussel, oyster and salmon farming, processing and wholesaling operations.
Sanford is interested in: Pacifica Seafoods (Christchurch) Ltd, Marlborough Mussel Co Ltd, Aqua King Ltd, Pacifica Seafoods (Dunedin) Ltd and ITQ Management Ltd.
OTHER INTERESTS
Pacifica Shipping Ltd; coastal trading around New Zealand ports; Port Denarau Marine Ltd; marina facilities for commercial and pleasure craft in Fiji; Akarua Wine Ltd in Bannockburn and Southern Discoveries Ltd, which operates tourist boats in Milford Sound and one on Lake Wakatipu.
• Auckland-based Sanford is involved in fin-fishery operations, and farming, processing and wholesaling of a variety of aquaculture species including mussels, oysters and salmon. For the six months to March, Sanford posted revenue of $185.8 million. After-tax profit was well down on the same period a year earlier, from $26 million to $5.3 million, because of low overseas prices for some export species.
