Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 

Wool Equities, Primary Wool Coop still discusing merger

Wool Equities, Primary Wool Coop agree to continue talks on potential merger

By Tina Morrison

Feb. 7 (BusinessDesk) – Wool Equities, which manufactures wool for its grower shareholders, and Primary Wool Cooperative, a farmer-owned joint venture with wool broker Elders, agreed to continue to progress talks about a possible merger to boost returns after an initial meeting this week.

The boards of Wool Equities, with 9,500 farmer shareholders, and Primary Wool, owned by about 1,200 farmers, met on Wednesday to discuss the proposed unity of the two entities for the benefit of shareholders and the wider wool industry, said Wool Equities chairman Clifford Heath.

“There are enough synergies and opportunities for us to keep talking to see if we can pull the whole thing together,” Heath said.

The two businesses are at opposite ends of the wool market as Primary Wool takes wool from farmers at the farm gate and onsells it, while Wool Equities buys scoured wool and converts it into yarn and garments through its spinning, weaving and knitting operations.

The wool companies are eyeing the success of Fonterra Cooperative Group which operates the full chain, buying milk from its farmer shareholders, then manufacturing and selling the processed products such as milk powder, cheese and yogurt.

Wool, once New Zealand’s largest export, has lagged price gains of other agricultural commodities in recent times in the face of industry fragmentation and increased competition from cheaper synthetic rivals.

Milton, Otago-based Wool Equities operates in the finer end of the wool market for garments, using merino, mid-micron and crossbred lamb’s wool and Palmerston North-based Primary Wool handles all types of wool.

Shares in Wool Equities, which trade on the stock exchange’s NZAX index for smaller companies, last changed hands at 2 cents, having declined 77 percent this year.

(BusinessDesk)

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

Water: Farming Leaders Pledge To Help Make Rivers Swimmable

In a first for the country, farming leaders have pledged to work together to help make New Zealand’s rivers swimmable for future generations. More>>

ALSO:

Unintended Consequences: Liquor Change For Grocery Stores On Tobacco Tax

Changes in the law made to enable grocery stores to continue holding liquor licences to sell alcohol despite increases in tobacco taxes will take effect on 15 September 2017. More>>

Back Again: Government Approves TPP11 Mandate

Trade Minister Todd McClay says New Zealand will be pushing for the minimal number of changes possible to the original TPP agreement, something that the remaining TPP11 countries have agreed on. More>>

ALSO:

By May 2018: Wider, Earlier Microbead Ban

The sale and manufacture of wash-off products containing plastic microbeads will be banned in New Zealand earlier than previously expected, Associate Environment Minister Scott Simpson announced today. More>>

ALSO:

Snail-ier Mail: NZ Post To Ditch FastPost

New Zealand Post customers will see a change to how they can send priority mail from 1 January 2018. The FastPost service will no longer be available from this date. More>>

ALSO:

Property Institute: English Backs Of Debt To Income Plan

Property Institute of New Zealand Chief Executive Ashley Church is applauding today’s decision, by Prime Minister Bill English, to take Debt-to-income ratios off the table as a tool available to the Reserve Bank. More>>

ALSO: