He concluded that the steps taken by the companies to ensure that the product complied with the standard were “grossly negligent.” “The creation of the fake certificate can only have been deliberately carried out in order to provide an additional false assurance of compliance with the Standard," he said. “The use of non-compliant steel mesh, especially in the context of earthquake compliant mesh, has actual and potentially enormous consequences for consumers, for competitors and for the reputation of the building industry.” “Very strong specific and general deterrence is required in these circumstances.” Commerce Commission opens investigation into Fulton Hogan's proposed acquisition of Stevenson Group Limited’s construction materials business The Commission will consider whether the acquisition would be likely to result in a substantial lessening of competition in any relevant market in breach of section 47 of the Commerce Act. The acquisition is due to be completed by 31 July 2018. The parties have not applied for clearance for the acquisition. Fulton Hogan is one of New Zealand’s largest roading and infrastructure construction companies. The initial focus of the investigation will be on the potential competitive effects of the proposed acquisition on quarry markets in Auckland and North Waikato. However, the investigation will also consider whether any competitive effects arise from Fulton Hogan’s proposed acquisition of Stevenson’s concrete plants, transport, laboratory services and associated plant and equipment. The Commission invited parties who consider they hold relevant information to contact the Commission by email to [email protected] with the reference Fulton Hogan/Stevenson in the subject line no later than 4pm Friday 29 June 2018. Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. The Commission administers a voluntary regime that allows firms to apply for clearance if they consider their planned acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an investigation into a proposed or completed merger under Section 47. If a person breaches Section 47 they may be subject to a penalty of up to $500,000 for an individual or $5 million for a firm.