Merger Benefits May Take Time To Appear

Press, Volume C, Issue 29674, 18 November 1961, Page 17

Merger Benefits May Take Time To Appear

(N.Z.P.A.-Reuter—Copyright)

LONDON, November 16. The benefits of the merger between the New Zealand Loan and Mercantile Agency and Dalgeity's might take some time to appear, the ehairmsrm of the New Zealand firm (Mr Michael Brown) warned at the annual meeting in London. There was no doubt that in due course many economies would be effected, and

these would be really substantial. But inevitably the actual process of merging would produce exception*! expenses, and these would be incurred before the economies could be achieved, he said, the “Financial Times’” reported. Mr Brown also warned that because of dry conditions in many parts of Australia and New Zealand it might be that the combined results for the year ending next June might be lower than the total of the two companies’ independent results of last year. Economies However, he was sure that by the year ending June, 1963, substantial economies would have played their part in the form of reduced expenditure or increased business, and that other benefits from the merger would accrue over the two or three years after that. He concluded; “If we did not think that you. as shareholders, would be likely to receive larger ordinary dividends from the merged company than you would be likely to receive from our company continuing on its own, we should not have recommended this merger to you.”

Business Personal Mr T. J. McKee, of Nelson, has been appointed a director of Dominion Salt, Ltd., in succession to the late Mr J. R. Templin. He is man-aging-director of two Nelson firms, the Fruitgrowers' Chemical Company, Ltd., which processes agricultural chemicals, and Lime and Marble, Ltd., which processes minerals.