Wool scouring operator Cavalier Wool Holdings says it will proceed with plans to buy the assets of a rival scourer and trader after a High Court judgement in its favour.
The High Court has dismissed an appeal against a Commerce Commission decision allowing Cavalier to create a wool scouring monopoly by acquiring the assets of New Zealand Wool Services International.
Cavalier Wool Holding's chief executive Nigel Hales says the court ruling paves the way for it to negotiate a sale agreement with Wool Services International.
He says it's not seeking to buy the majority shareholding of the company, which is currently in receivership.
It aims to acquire the working assets of Wool Services, which include its trading operation as the country's biggest wool exporter.
Mr Hales says it still intends to sell off the wool trading arm as a going concern, but merge the two companies' North and South island scouring operations.
He says Cavalier has been involved in earlier restructuring of wool scouring services, which reduced processing costs.
The appeal against the Commerce Commission decision was lodged by the country's biggest carpet manufacturer Godfrey Hirst, which says the judgement is disappointing for the whole wool industry as well as users of New Zealand wool.
Godfrey Hirst general manager Tania Pauling says it's too early to know if it will consider any further action, as details of the judgement have yet to be released.
The company is concerned that a scouring monopoly could lead to an increase in processing costs in New Zealand.
Tania Pauling says Godfrey Hirst already has its woven carpets made in China and India.
