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

 

Media: Julian Wilcox Leaves Māori TV

Māori Television has confirmed the resignation of Head of News and Production Julian Wilcox. Mr Maxwell acknowledged Mr Wilcox’s significant contribution to Māori Television since joining the organisation in 2004. More>>

ALSO:

Genetics: New Heat Tolerant Cow Developed

Hamilton, New Zealand-based Dairy Solutionz Ltd has led an expert genetics team to develop a new dairy cow breed conditioned to thrive in lower elevation tropical climates and achieve high milk production under heat stress. More>>

Fractals: Thousands More Business Cards Needed To Build Giant Sponge

New Zealand is taking part in a global event this weekend to build a Menger Sponge using 15 million business cards but local organisers say they are thousands of business cards short. More>>

Scoop Business: NZ Net Migration Rises To Annual Record In September

New Zealand’s annual net migration rose to a record in September, beating government forecasts, as the inflow was spurred by student arrivals from India and Kiwis returning home from Australia. More>>

ALSO:

Scoop Business: Fletcher To Close Its Christchurch Insulation Plant, Cut 29 Jobs

Fletcher Building, New Zealand’s largest listed company, will close its Christchurch insulation factory, as it consolidates its Tasman Insulations operations in a “highly competitive market”. More>>

ALSO:

Scoop Business: Novartis Adds Nine New Treatments Under Pharmac Deal

Novartis New Zealand, the local unit of the global pharmaceuticals firm, has added nine new treatments in a far-ranging agreement with government drug buying agency, Pharmac. More>>

ALSO:

Crown Accounts: English Wary On Tax Take, Could Threaten Surplus

Finance Minister Bill English is warning the tax take may come in below forecast in the current financial year, as figures released today confirm it was short by nearly $1 billion in the year to June 30 and English warned of the potential impact of slumping receipts from agricultural exports. More>>

ALSO:

Get More From Scoop

 
 
Standards New Zealand

Standards New Zealand

Mosh Social Media
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news