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

 

Commerce Commission draft determination on scouring merger

MEDIA RELEASE: FOR IMMEDIATE RELEASE

Commerce Commission draft determination on scouring merger

[Auckland, NZ: 27 March 2015]

The Commerce Commission yesterday issued its draft determination, approving the merger of the scouring assets of 50%-owned Cavalier Wool Holdings Ltd (CWH) and New Zealand Wool Services International Ltd (NZWSI).

The Commission will allow a period for formal submissions from interested parties after which it will issue a final determination.

The Directors of CWH believe that the interim decision confirms their view that the merger is in the best interests of the New Zealand wool scouring industry.

Cavalier Corporation CEO Colin McKenzie says the merger will create synergies by taking out excess capacity in the industry and lead to improved profitability. The decision comes as the price of wool grease is beginning to recover.

“It is opportune for Cavalier Corporation, as we deliver on a range of measures to turn the business around.”

He says the merger is part of a matrix of changes the Cavalier Group of companies has been working on that will deliver measurable improvements to profitability: “We have been working closely with Deloitte on a three-year strategy and this has been a fruitful process for us as we fine-tune our plans for the business.”

Among the initiatives is an extension to the alliance with Mohawk which has already opened up an important US market for premium wool carpets and provided an exclusive distribution arrangement for Mohawk carpet tiles in Australia. As a result of this, Ontera now has the most extensive tile offering in Australia. Another is the ongoing roll-out of the premium Habitat Collection and other synthetic ranges, which has advanced to the point where synthetics account for almost half of the total carpet production.

The Company continues with its programme to reduce debt.

ENDS

Colin McKenzie
Managing Director and CEO
For and on behalf of the Board of Directors


© Scoop Media

 
 
 
Business Headlines | Sci-Tech Headlines

 

Air New Zealand: Flying Year-round To Popular Queensland Destinations

Air New Zealand is moving to year-round direct flights on its Auckland-Cairns, Auckland-Sunshine Coast and Christchurch-Gold Coast routes under an agreement with the Queensland Government... More>>




SEA: Another First For Solar Energy In New Zealand

The Sustainable Energy Association NZ (SEANZ) congratulates Sunergise on the commissioning of the Sunergise Kapuni Solar Power Plant, the largest in the country... More>>

Accenture: More Boomers Than Zoomers Want To Work From Home

While often associated with tech savvy Gen Z or Zoomers, new global research from Accenture shows that the push for more flexible working environments is being led by Gen Xers and Baby Boomers... More>>

Banking: Westpac New Zealand To Remain Part Of Westpac Group

Westpac New Zealand Limited (WNZL) remains part of Westpac Group following a decision for the two businesses not to demerge. Westpac Group Chief Executive Officer, Peter King, said: “After a detailed review, we believe a demerger of the WNZL business would not be in the best interests of shareholders... More>>

Mercury: Enters Into Binding Agreements To Acquire Trustpower’s Retail Business

Mercury NZ Limited (Mercury) has announced that it has entered into binding agreements with Trustpower Limited (Trustpower, NZX:TPW) to acquire Trustpower’s retail business for NZ$441 million... More>>

ALSO:


ASB: New Zealanders Missing Out On Hundreds Of Millions In KiwiSaver Government Contributions

New Zealanders have just over a week to ensure they’re eligible for the maximum annual government KiwiSaver contribution... More>>