Auckland, New Zealand - New Zealand's Comfort Group, which owns the Sleepyhead mattress brand, has been given clearance to buy foam group Dunlop Living, but must sell the foam underlay business currently owned by Dunlop.
The New Zealand Commerce Commission said it was satisfied that Comfort's acquisition of bedding, furniture and flooring group Dunlop Living would not lessen competition in the national market for the manufacture and supply of polyurethane foam and box bedding. In the PU foam market, Comfort Group is unlikely to be a significant competitor with, or without, its purchase of Dunlop Living, the commission concluded.
However, the commission noted that the merger would significantly increase Comfort's market share for PU foam underlay. Therefore the merged business has been instructed to sell Dunlop Living's foam underlay unit to an independent party to "remedy the loss of competition" in that market, the commission said.
Auckland-headquartered New Zealand Comfort Group makes beds, carpet underlay and foam, which it mostly uses in its Sleepyhead branded beds.