New Zealand Woolscourers applies for clearance

New Zealand Woolscourers applies for clearance

The Commission has received an application from Auckland businessman Mr David Ferrier seeking clearance by him and his wholly owned company New Zealand Woolscourers Limited to acquire the wool scouring and wool dumping assets of Godfrey Hirst NZ Limited, as well as up to 100 percent of the shares in Cavalier Wool Holdings Limited and some of Godfrey Hirst's wool scouring assets at Napier. The application also contains an undertaking that Mr Ferrier will subsequently divest the wool dumping assets of Godfrey Hirst.

Cavalier Wool, which is 92.5 percent owned by Cavalier Bremworth Limited and 7.5 percent by interests associated with Mr David Ferrier, operates wool scours at Napier and Timaru. Godfrey Hirst operates wool scours at Napier and Invercargill.

In considering the application, the Commission's role is to determine whether the acquisition has the effect of substantially lessening competition in a market.

A public version of the application is available on the Commission's website www.comcom.govt.nz under public registers. Background

The proposed acquisition involves a series of transactions which would result in the wool scouring businesses of Godfrey Hirst and Cavalier Wool coming under common ownership.

In the application, clearance is sought for:

(a) Mr David Ferrier, through his wholly owned company New Zealand Woolscourers, or any interconnected body corporate, to acquire up to 100 percent of:

(i) the wool scouring assets of Godfrey Hirst, or any interconnected body corporate, comprising the assets located at Clive (near Napier), Clifton (near Invercargill), 50 shares in Lanolin Trading Co Limited, stock and lanolin; and/or

(ii) the wool dumping assets of Godfrey Hirst, comprising the plant and equipment located at Clive, Clifton, Christchurch and Dunedin; and/or

(iii) up to 100 percent of the shares in Cavalier Wool, or any interconnected body corporate; and/or

(b) Cavalier Wool (in which Mr Ferrier related interests will have a shareholding giving rise to a substantial degree of influence), or any interconnected body corporate, to acquire the 2.4m wool scouring line at Clive and land and buildings located at Main Road, State Highway 2, Clive, Hawkes Bay, an assignment of the contract for wool scouring with Godfrey Hirst and 50 shares in Lanolin Trading Co Limited.

ENDS

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