Friday, 24 June 2016 12:25

Cavalier Wool disappointed with new appeal

Written by 

Cavalier Wool Holdings (CWH) is 'disappointed but not surprised'.

Australian owned carpet maker Godfrey Hirst has made the decision to launch another appeal against CWH's proposal to merge its wool scouring operations with NZ Wool Services International (NZWSI).

"There is currently excess wool scouring capacity in New Zealand, this proposal is about consolidating assets and realising efficiencies in order to keep wool processing in the country longer term," it says in a statement.

"We want to avoid what has happened with off-shoring of scouring in Australia and instead create a single, internationally competitive wool processing entity in New Zealand.

"It is disappointing that despite the Commerce Commission ruling in favour of the merger and Godfrey Hirst recently losing an appeal against this in the High Court they have chosen to continue to draw this out and launch yet another appeal." CWH is owned by Cavalier Corporation, the Accident Compensation Corporation (ACC) and local private equity firm Direct Capital.

"Under the merger proposal CWH NZ shareholders will have the majority shareholding with 55% of the merged company and Lempriere (international parent owners of NZWSI) 45%. Lempriere will need Commerce Commission approval to increase its shareholding beyond 45%."

More like this

Limited feed puts ewes at risk

Severe feed shortages in parts of the country mean many ewes are on a nutritional knife-edge heading into lambing and could be at risk of developing metabolic disorders.

Feed the most critical factor

Maintaining ewes in good body condition and the provision of shelter are two important management factors in maximising this year’s lamb crop.

What’s different? — Editorial

OPINION: Long-time wool industry observers have greeted the latest report aimed at resurrecting the ailing fortunes of the country’s struggling strong wool sector with a healthy dose of cynicism.

An actual plan or more woolly thinking?

Despite claims by Agriculture Minister Damien O’Connor that a new report will be the plan “to revitalise New Zealand’s strong wool sector…” there’s widespread belief it will do no such thing.

Featured

 

Water reforms come at a cost

The government’s new freshwater laws, signed off this week, have the potential to create significant unnecessary costs for ratepayers, farmers and entire communities, Federated Farmers says.

2020 harvest yields up

Final harvest data for wheat, barley and oats (milling/malting and feed) in 2020 show yields were up 17% overall across the six crops.

Difficult but the right call

DairyNZ chief executive Dr Tim Mackle says the joint decision three years ago to eradicate Mycoplamsa bovis was a difficult call.

» The RNG Weather Report

» Latest Print Issues Online

The Hound

Spell check

Your old mutt was not surprised to see the NZ Dairy Industry Awards hastily remove the title of this year’s…

About time!

Your canine crusader has been a long-time critic of NZ governments – of all stripes – who, for the past…

» Connect with Rural News

» eNewsletter

Subscribe to our weekly newsletter