Godfrey Hirst loses court appeal against Cavalier's wool scour merger

Wednesday 8th June 2016

Godfrey Hirst's High Court appeal against a merger of New Zealand's largest wool scouring operations was dismissed, allowing the creation of a dominant scourer involving rival carpet maker Cavalier Corp.

The Commerce Commission in November approved a plan for Cavalier Wool Holdings to acquire New Zealand Wool Services International's wool scouring business and assets, saying the public benefits would outweigh the loss of competition. Australian company Godfrey Hirst, which competes with Cavalier Wool Holdings group member Cavalier Corp, had its appeal against that ruling dismissed, Auckland-based Cavalier Corp said in a statement today.

The merged scouring business will be 55 percent owned by Cavalier, private equity firm Direct Capital and the government's Accident Compensation Corp, with WSI parent Lempriere taking a 45 percent stake.

"The shareholders of CWH are pleased with the decision and look forward to proceeding with the merger as planned," Cavalier Corp chief executive Paul Alston said in the statement.

Cavalier shares last traded at 66 cents and have gained 8.2 percent this year.

BusinessDesk.co.nz

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