Sharechat Logo

Wrightson cleared to sell seeds business

Wednesday 13th February 2019

Text too small?

PGG Wrightson has been cleared to sell its seeds business to Denmark's DLF Seeds.

The Commerce Commission said the $434 million transaction, announced in August, was unlikely to substantially reduce competition in any of the markets it assessed.

 

“DLF is not at present a close competitor of PGG Wrightson Seeds in respect of ryegrass seeds containing endophytes and is unlikely to be so in the future,” deputy chair Sue Begg said.

 

“Further, the merged entity would continue to be constrained by Barenbrug Agriseeds, and a number of smaller competitors.”

Wrightson expected to book a gain of about $285 million on the deal and signalled to investors it could return up to $292 million to shareholders on completion, either through a buy-back or a share cancellation.

The proposal won almost 97 percent support at a special meeting in October. The New Zealand Shareholders' Association opposed the transaction, saying the short-term gain for investors was offset by the remaining Wrightson operation being half the size and inferior to the seeds unit.

(BusinessDesk)



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report