Watchdog gives merger green light

By DALE LUMA
WATER PNG Ltd’s proposal to merge with Eda Ranu has been cleared, according to the Independent Consumer Competition Commission (ICCC).
The watchdog announced in a press conference yesterday that the decision was reached after it had completed a competition assessment under the ICCC Act.
It said the approval was given after findings from the assessment established that there would not be any monopoly issues if the two companies merged.
Commissioner and chief executive officer Paulus Ain said it took almost 10 months for the assessment to be completed following a request by Water PNG to merge with Edan Ranu on Oct 17 last year.
“The ICCC undertook a wider public consultation process with key stakeholders and the public and the submissions were taken onboard by the ICCC,” he said.
“According to the findings of the ICCC, the monopoly issue that the public is concerned about will not be a concern.
“This is mainly because the two water entities operate in separate environments, one operates in Port Moresby while the other operates outside of Port Moresby.
“So the merger in itself, according to our view and findings, will not have any monopoly issues.
“If there is an issue that needs to be addressed, we have the regulatory price control mechanisms under the ICCC Act that sets the prices of both Water PNG and Eda Ranu.”
Ain said that through ICCC’s assessment, it had established that there would not be any emergence of a new water company in Port Moresby or anywhere in the country.