New Zealand's Commerce Commission has defended its extended timelines for merger approvals, stating that ensuring legally sound decisions takes precedence over the financial costs incurred by companies during the review process.
The regulator's comments follow criticism regarding the eight-month period required to finalize its decision on Godfrey Hirst's acquisition of Bremworth.
The Commission acknowledged the significant time and capital expenditure involved for applicants but maintained that thoroughness is essential to uphold competition standards.
This stance highlights the ongoing tension between regulatory diligence and corporate efficiency in M&A transactions.
For investors, prolonged review periods introduce uncertainty and delay the realization of synergies, potentially weighing on deal valuations and integration planning.
The case serves as a reminder for market participants to factor in extended regulatory timelines when structuring deals in New Zealand.