10 Jun 2011

Godfrey Hirst to appeal over rival's purchase

8:45 pm on 10 June 2011

Australian-owned carpet manufacturer Godfrey Hirst will appeal against the Commerce Commission's decision to let Cavalier Wool Holdings buy the scouring operations of a rival, saying it results in a monopoly.

The commission admits the acquisition of Wool Services International's assets will reduce competition and may result in higher prices, but argues the expected considerable savings outweigh the detriments.

Cavalier Wool has made a $40 million takeover for Wool Services, and its chief executive Nigel Hales says the ball is now in Wool Services' hands.