Cavalier Wool Holdings applies for authorisation to merge with New Zealand Wool Services International Limited
Published23 Oct 2014
The Commerce Commission has received an application from Cavalier Wool Holdings Limited (Cavalier) seeking authorisation to acquire New Zealand Wool Services International Limited’s (WSI) wool scouring business.
The Commerce Commission has received an application from Cavalier Wool Holdings Limited (Cavalier) seeking authorisation to acquire New Zealand Wool Services International Limited’s (WSI) wool scouring business.
Cavalier Wool Holdings owns two wool scouring plants in Hawke’s Bay and one plant in Timaru. Cavalier Corporation also owns a wool buying business.
WSI is both a wool scourer and a wool trader. It owns two scouring plants, one in Hawke’s Bay and the other in Kaputone, near Christchurch.
The merged scouring business will be 27.5% owned by Cavalier Bremworth, each of Direct Capital and the Accident Compensation Corporation will have 13.75%, and WSI’s parent company, Lempriere (Australia) Pty Limited will acquire a 45% shareholding in Cavalier. WSI will retain its wool trading business.
If authorisation is granted, Cavalier and WSI will no longer be independent wool scouring competitors.
Any person wishing to make a submission on this matter can contact the Commission at registrar@comcom.govt.nz with the reference Cavalier/WSI in the subject line of your email or to PO Box 2351, Wellington 6140.
When we receive an authorisation application, we must first assess whether the merger would be likely to substantially lessen competition in a market. If we are satisfied that the merger is not likely to have that effect, then we would clear the merger.
If we cannot give clearance, we apply the public benefit test to determine whether to authorise the merger. We must authorise a merger where we are satisfied that the merger will be likely to result in such a benefit to the public that it should be permitted.
In June 2011 the Commission granted Cavalier authorisation to acquire all of WSI’s wool scouring assets and 50% of the shares in the Lanolin Trading Company Limited (Decision 725). The proposed merger did not eventuate and the 2011 authorisation has now expired.
Cavalier no longer has an interest in the Lanolin Trading Company which ceased trading on 31 December 2013.
