Cavalier Wool Holdings plans for a merger with New Zealand Wool Services International’s scouring operations have been approved by the Commerce Commission.

The merger is a step closer following a positive preliminary determination in favour of the plans, and means Cavalier Wool Holdings can now acquire shares or assets of New Zealand Wool Services.

Nigel Hales, CEO of Cavalier Wool Holdings, says the company can now move forward with its bid with greater confidence and in the knowledge that the Commerce Commission was willing to ‘pave the way’.

The merger means Wool Service International’s scouring assets could be moved to Cavalier Wool Holding’s facilities in Napier and Timaru for restructuring. Cavalier Wool Holdings plans to sell the trading division of NZWSI as a going concern.

Nigel Hales says there will be significant employment opportunities available for NZWSI staff at the merged scouring sites.