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Two farmer-owned rural traders are looking at merging their operations.
Farmlands Trading Society and Combined Rural Traders (CRT) have begun investigating a potential merger between the two cooperatives.
In a joint statement, the two co-ops said they have appointed external professional advisers to assist with their investigations. Shareholders will be given an update in mid-October.
"Any proposals would be subject to full consultation and a vote from all our cooperative members," the statement says.
It says given both cooperatives operate in the same sector but different markets, the possibility of a merger has been speculated by market commentators for a number of years
"The boards of each company will undertake a thorough evaluation process, which may take some time, before making any formal recommendations to shareholders. A final decision will be up to shareholders in both cooperatives to whom full information will be provided in addition to shareholder consultation meetings."
CRT operates 31 stores in the South Island. Farmlands operates 45 stores in the North Island.
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