Australian-owned carpet manufacturer Godfrey Hirst has started its appeal against a Commerce Commission decision to give Cavalier Wool Holdings the authorisation to acquire the scouring interests of its rival, Wool Services International.
The Commerce Commission has acknowledged the purchase may reduce competition for the supply of wool scouring services but reckons the benefits will outweigh the detriments.
It concluded rationalising the industry would lead to cost savings of $13.5 million.
Godfrey Hirst's lawyers decided to appeal against the decision and in early July the High Court in Wellington granted an application which prevented the sale to Cavalier going ahead until the outcome of a court case.
The appeal at the High Court in Wellington before Justice Mallon is expected to last until Friday afternoon.