NEW ZELAND - The Commerce Commission in New Zealand approved a merger in the South Island fiberboard business.

The approval will allow the Japanese company Daiken New Zealand to acquire 100% of the shares in Dongwha New Zealand Limited, which is 80% owned by a Hong Kong-based company.

Daiken operates in New Zeland since 2009 when it bought an MDF factory in Rangiora, Canterbury, as part of a joint venture with Japanese conglomerate Itochu Corp from Carter Holt Harvey owner Graeme Hart, who put the company’s panel board assets up for sale.

Dongwha produces MDF from its base in Mataura, Gore, and was majority owned by Hong Kong-based Dongwha International and 20% by Fletcher Building subsidiary Laminex Group (NZ). The commerce commission informed that the merger would not substantially lessen competition in the relevant market.

Daiken president Masanori Okuda said the move was a first step toward expanding the company’s MDF operations.