Wellington, February 5, 2026 — The New Zealand authority has raised concerns that a proposed joint venture combining all commercial rafting operators in Rotorua could substantially lessen competition, warning that the transaction would create a monopoly in guided rafting services on the Kaituna River.
In a Statement of Issues, the authority said it is investigating whether the proposed acquisition by a newly formed entity, Rafting JV Co, of the rafting and sledging assets of Rotorua Rafting, Kaitiaki Adventures, and Kaituna Cascades would lead to higher prices, reduced quality or less choice for consumers.
According to the authority’s preliminary assessment, the three operators are each other’s closest competitors in the supply of guided rafting trips in Rotorua, particularly for grade 5 rafting on the Kaituna River. The authority noted that the parties are the only providers of these services and that their merger would reduce the number of operators from three to one.
The authority’s initial view is that the relevant market is the supply of guided rafting trips in Rotorua, rather than a broader market for adventure tourism or tourism activities more generally. While other tourism experiences may impose some competitive constraint, the authority said the extent of this constraint is unclear and unlikely to be sufficient to offset the loss of competition between the merging parties.
The authority also expressed concern about barriers to entry. It found that access to Department of Conservation concessions is required to operate commercial rafting services on the Kaituna River and that the number of available concessions appears to be limited. The parties currently hold all active concessions and intend to retain them post-merger. Evidence before the authority suggests that additional concessions are unlikely to be granted, which could prevent new entry and entrench a monopoly position.
The Statement of Issues further notes that there is no evidence of existing rafting operators elsewhere in New Zealand planning to enter the Rotorua market or of other tourism operators being likely to expand into rafting in response to any post-merger price increases or quality reductions.
While the authority does not currently consider coordinated or conglomerate effects to raise concerns, it said unilateral effects remain a key focus of its investigation. It is also continuing to assess whether wholesalers, agents, resellers, and tour operators have sufficient countervailing power to constrain the merged entity.
The authority has extended the statutory timeframe for its decision and is now scheduled to determine whether to grant clearance by April 14, 2026. It has invited submissions from interested parties by February 20, 2026.
