Wairarapa unhappy

Press, 28 August 1986, Page 26

Wairarapa unhappy

PA Masterton The Commerce Commission’s 11th hour decision on the WrightsonDalgety merger has found little favour in the Wairarapa.

The commission announced that the merger could go ahead except in the Wairarapa and four other areas.

Wairarapa branches of the companies made submissions to b& included in the merger and Elders Pastoral, a new entrant in the Wairarapa market place, made submissions aimed at gaining access to the Wairarapa stockyards.

This access is provided for in the five conditions to be followed by those branches which have been excluded from the merger.

Wrightson NMA’s Masterton manager, Mr Jules Houghton, said he was disappointed with the

decision. “From this area’s point of view and the way farming is going, if we (Wrightsons and Dalgetys) got together we could probabaly have done the job better in servicing the rural community,” Mr Houghton said. The conditions to allow new entrants to either buy into the saleyards or lease them at a reasonable fee did not alter that status quo. “We have been negotiating to sell part of the saleyards to Elders but we didn’t get very far because we were waiting for the commission decision.

“While we are disappointed we can’t do anything about it but get back to business.”

Mr Houghton said he expected the trading outcome of the decision would be Wrightson-Dal-gety branches competing against

Dalgety-Crown branches within the Wairarapa. Dalgety-Crown’s manager, Mr Shaw Bowron said the decision left the Wairarapa branches in limbo.

“We won’t know for 48 hours who wants us or if anyone wants to buy us out.”

His first preference would be that DalgetyCrown would carry on as strong, small, regional companies within the five areas excluded.

They could operate as Crown Corporation or by giving birth to a new company in those areas.

“Or we could be offered to the industry and they could shut the door on us.”

In July, Elders Pastoral was given Commerce Commission permission to acquire all or part of the assets of Dalgety Crown or alternatively all the issued capital of Dalgety Crown.