The Commerce Commission has given clearance today for Auckland businessman Mr David Ferrier, or his company New Zealand Woolscourers Limited, to acquire wool scouring and wool dumping assets of Godfrey Hirst NZ Limited and shares in Cavalier Wool Holdings Limited. The acquisition will result in the wool scouring businesses of Cavalier Wool and Godfrey Hirst coming under common ownership.

The clearance is subject to an undertaking that Mr Ferrier will divest the wool dumping assets acquired as part of the acquisition.

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

Commerce Commission Chair Paula Rebstock said that the Commission was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in any of the relevant markets.

The merged entity would face constraints in the wool scouring services market from an existing competitor, New Zealand Wool Services International, the potential for new entry and the buyer power of wool merchants, who are the major users of wool scouring services.

A public version of the written reasons for the decision will be available as soon as practicable on the Commission's website, www.comcom.govt.nz under the Clearances Register