30 Nov 2016

Godfrey Hirst loses appeal to block NZ wool processing merger

5:15 pm on 30 November 2016

Australian carpet maker Godfrey Hirst has lost its Court of Appeal case to stop a merger designed to create a single wool processing business in New Zealand.

wool

Photo: 123rf

Godfrey Hirst was appealing against earlier decisions by the Commerce Commission and the High Court, which gave a green light to a merger of the wool scouring operations of New Zealand Wool Services International and Cavalier's 50 percent-owned Cavalier Wool Holdings.

Cavalier said the decision further supported the proposal to consolidate the scouring business, which would create the efficiencies necessary to keep wool processing in New Zealand longer-term.

The Commission earlier found the rationalisation of the wool scouring business was inevitable, as a number of New Zealand operators had been failing for some time with a declining wool clip and increasing greasy wool exports to China.

Cavalier said the Appeal Court decision could still be appealed.