Commerce Commission v Fonterra

[2006] NZSC 61

IN THE SUPREME COURT OF NEW ZEALAND

SC 39/2006
 [2006] NZSC 61

BETWEENCOMMERCE COMMISSION

Appellant

ANDFONTERRA COOPERATIVE GROUP LIMITED

Respondent

Court:Elias CJ, Blanchard and Anderson JJ

Counsel:D J Goddard QC and L Theron for Appellant

J A Farmer QC and A K Rawlings for Respondent

Judgment:17 August 2006 

JUDGMENT OF THE COURT

A.        Leave to appeal is granted.

B.        The approved ground of appeal, in terms of r 29, is:

Did Fonterra use a “cost of capital rate” within the meaning of regulation 9 in setting the price of a co-operative share on the basis of a weighted average cost of capital rate rather than a cost of equity capital rate?

C.Any application for leave to cross appeal must be made formally.

Solicitors:

Commerce Commission, Wellington for Appellant
Minter Ellison  Rudd Watts, Auckland for Respondent