Coasties may soon see changes in the LPG market as Elgas Limited has submitted an application to the Commerce Commission seeking clearance to acquire significant assets from Vector Limited.

The deal involves Elgas acquiring 60.25% of Liquigas Limited’s shares from Vector Investment Holdings Limited, as well as all assets of OnGas Limited, a Vector subsidiary.

Elgas and Vector are both major players in New Zealand’s LPG market, competing on both wholesale and retail levels.

Their products include LPG cylinders of various sizes and bulk supply options delivered by truck to customers across the country.

They also supply LPG through localised networks to some customers.

Liquigas Limited, the company at the heart of this transaction, plays a critical role in the LPG supply chain.

It operates LPG storage terminals in four locations across New Zealand, distributing LPG to wholesalers like Elgas and Vector.

Currently, Vector holds the majority stake in Liquigas at 60.25%, with Elgas already holding an 18.7% share.

The Commerce Commission will assess the application to determine if the proposed acquisition is unlikely to substantially lessen competition in the LPG market.

A public version of the clearance application will soon be available on the Commission’s case register.