Mogal buys Canty firm

Press, 24 March 1984, Page 22

Mogal buys Canty firm

The road cartage activities of Mid-Canterbury Industries, Ltd, Ashburton, better known as Mid-Can-terbury Transport, has been sold to Mogal Corporation Ltd, of Auckland. The change takes effect from March 31, but the fleet numbers involved in thesale were still being settled yesterday. No redundancies have been caused by the purchase. The road cartage activities of Mid-Canterbury were bought through Burnetts Transport Ltd, Mogal’s Ashburton subsidiary, which was formerly part of Bramble’s Burnett, Ltd. The purchase also includes the Christchurch and Timaru activities of Mid-Canter-bury’s road hauling activities.

Mogal associate director (finance), Mr J. Lord, said yesterday that the purchase was for cash, but he would not disclose the figure. Although Mogal had a freight-forwarding company in Christchurch, the purchase represented a return by the group to the city after an absence of three years. The return had been caused by the deregulation of the transport industry, he said.

Besides being involved in Ashburton, Mogal has SCG Transport, Ltd, in Dunedin, which is expected to change its name next month.

In a statement, Mogal’s managing director, Mr R. H. Fisher, said that the acquisition of Mid-Canterbury’s road cartage business would strengthen the group’s South Island freight activities. Mid-Canterbury Industries will continue to work in farm building construction, transport equipment, engineering bus and tour services, and its service station.

In a statement, Mid-Can-terbury Industries’ managing director, Mr B. A. Cullen, said that the decision to sell Mid-Canterbury Transport was caused by continuing difficult trading, the effects of the new transport regulations, and the need to concentrate on more profitable activities.