Difference of opinion stalls merger of wool grower bodies

24 May '10

1 min read

On account of differences of opinion stemming from the business partners of their respective commercial arms, two farmer's wool bodies have not been able to reach a consensus and initiate a merger.

Former Meat and Wool New Zealand Chairman, Jeff Grant is trying to broker a merger or any other working relationship between two farmer-owned wool co-operatives, Wool Grower Holdings (WGH) and Primary Wool Co-operative.

But the varied business perspectives and motives of their partners; Wool Partners International (WPI) of Wool Grower Holdings and Elders Primary Wool of Primary Wool Co-operative are stalling the merger.

WPI is co-owned by WGH and PGG Wrightson and the farmers attached to WGH want full control of WPI and PGG Wrightson is in full agreement for divesting its take in WPI to WGH.

However, Elders Primary Wool is of the opinion that, they don't see grower ownership and control as important, which is in direct contrast to the views of WGH.

These diverse views are mainly stalling the merger talks and there is all likelihood that if they do not fruity within the next few days, WGH would go ahead with taking over a full controlling stake of WPI.

Fibre2fashion News Desk - India