Wine merger
PA Auckland A merger of the Cooks New Zealand Wine Company, Ltd, and McWilliam’s Wines (NZ), Ltd, has been approved by the Commerce Commission. “The effect of the proposal and related transactions is for Brierley Investments, Ltd, ultimately to own more than 50 per cent of the ordinary shares of the merged company,” said the commission’s chairman, Mr John Collinge. Lion Breweries, Ltd, and Dominion Breweries, Ltd, will cease to hold shares in the merged company. After the merger the respective wine market share for the different companies is: Montana, 30 per cent; Cooks-McWilliam’s, 20 per cent; Corbans, 13 per
cent; Penfolds, 10 per cent; Villa Maria, 7 per cent; and others, 20 per cent. “After taking market shares and the competitive climate of the industry into account, the commission was satisfied that the structure of the wine-producing industry was such as to provide the effective competition, and that it would assist rationalisation of the grape surpluses currently existing,” Mr Collinge said. As part of the CooksMcWilliam’s merger, a retail tie to Lion would be phased out. “It is important that there be a wide choice of products in each outlet.” Tying outlets was a wasteful use of resources and an impediment to competition, he said.
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Press, 31 August 1984, Page 8
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208Wine merger Press, 31 August 1984, Page 8
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