FREEZING MERGER.

Wairarapa Daily Times, 21 October 1930, Page 4

FREEZING MERGER.

VALUABLE LEAD. -- : (By Telegraph —-Press Association).. GISBORNE, This Day. If negotiations, now in train, reach a satisfactory conclusion, freezing interests operating in Poverty Bay will jointly take a -step offering a valuable lead to the industry throughout the minion. Statements that a fusion of freezing interests was in train, which have been heard lately, are now substantiated by notice to the shareholders of the Gisborne Sheepfarmers’ Company of a special general meeting to consider a proposal authorising the directors to enter into arrangements with Nelson’s (N.Z.), Ltd., for joint operation of the Haiti works.

The projected fusion is highly important, as the first of its kind, representing an effort on the part of the companies to reduce the overhead costs of the industry. It is understood that there is no intention to fuse interests except in the actual operation of the freezing works, both companies retaining their separate headquarters and staffs. The proposals formulated for subrdission to the shareholders’ meeting cimtemplate the possible formation o* a subsidiary company to operatethe works, presumably on leasehold for a fixed period. It is well known that neither companv has been working profitably here in recent years, owing to insufficiency of stock to support tho two works. Last season men engaged at the two works made small average earnings, owing to broken time, and, though the projected fusion will reduce the pay-roll, ■ there will be improved earnings for men who secure engagement.

Negotiations are not yet finalised, but tho action of the Gisborne Sheepfarmers’ Company’s directorate is significant o 4 anticipated success.