6 May 2019
Release No. 143
Commission closes investigation into David Ferrier’s acquisition of stake in Cavalier
The Commerce Commission has closed its investigation into David Ferrier’s acquisition of a 70% equity interest in
Cavalier Wool Holdings Limited as its concerns with the transaction have been addressed.
In October last year the Commission opened an investigation of the acquisition under section 47 of the Commerce Act. The
Commission was concerned that the acquisition by the owner of New Zealand’s only wool dumping operation, New Zealand
Wool Dumping Limited (NZWD), of the majority shareholding of New Zealand’s only scouring business, Cavalier Wool
Holdings, might enable him to raise prices or lower the quality of either of those services.
Mr Ferrier had not sought clearance for the acquisition under the Commission’s merger regime.
Since the Commission opened its investigation, Mr Ferrier has sold down his majority interest in NZWD. The Commission
considers this action has resolved its competition concerns.
The reasons outlining the Commission’s decision have been published on its website.
Background
Section 47 of the Commerce Act prohibits acquisitions that are likely to substantially lessen competition. The
Commission administers a voluntary regime that allows firms to apply for clearance if they consider their planned
acquisition could raise competition issues. If firms do not apply for clearance, the Commission can initiate an
investigation into a proposed or completed merger under Section 47. If a person breaches Section 47 they may be subject
to a penalty of up to $500,000 for an individual or $5 million for a firm.
ends