Metro Performance Glass. Photo: Supplied
The Commerce Commission has poured cold water on Australian-owned glass maker Viridian's plan to take over Metro Performance Glass.
Viridian applied for clearance from the commission, though Metro Glass had already rejected initial approaches and Viridian was yet to make a formal offer.
The commission said it had identified potential adverse competitive effects arising from a loss of competition between Viridian and Metro in glass processing, supply and installation markets, where they were close competitors.
"These effects could include price rises, or reductions in product or service quality, including delivery timeframes," the regulator said in a statement.
"While we are continuing to investigate, those markets are likely to at least include those for the supply of glass to window and door fabricators and, separately, to glass merchants and glaziers."
The commission said the issues it identified were not intended to decline or clear a prospective merger.
Metro Glass previously said there were many obstacles in the way of any deal and doubted Viridian would receive the commission's approval.
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