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:

Steel & Tube Fy20 Trading Update
Further Contract Win Strengthens Scott Technology’s Position In Mining Sector
China’s Assertiveness Is Becoming a Problem for Its Friends, Too
New Talisman - Chairman’s Address to AGM 2020 August 6, 2020
T&G reports its 2020 Interim Results
Gold price hits $2,000 for first time on Covid
TruScreen strengthens its market presence in central and eastern Europe
Refining NZ announces non-cash impairment
Ryman Healthcare COVID-19 update Victoria
Talisman Quarterly Activities Report to 30 June 2020

IRG See IRG research reports