Vector applies for Commission approval to buy UnitedNetworks

Vector, owned by the Auckland Energy Consumer Trust, is throwing its hat into the ring for New Zealand's largest network company, which announced yesterday it had drawn up a short list of bidders.

Vector owns and operates the electricity network infrastructure in the Auckland region, distributing power to more than 270,000 customers.

UnitedNetworks is up for sale after major shareholder, United States-based Aquila said last month it wanted to sell its New Zealand investment.

UnitedNetworks said yesterday that confidentiality agreements have precluded it from revealing the identity or number of the domestic and international bidders.

Most of UnitedNetworks' revenue is from electricity distribution, but it also owns gas networks and two fibre optic telecommunications networks in the central business districts of Auckland and Wellington.

Other local companies in contention for the assets include Natural Gas Corporation and Powerco.

The Commerce Commission will decide whether a purchase by Vector would substantially lessen competition in the market.

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