PGG Wrightson has taken direct control of Wool Partners International (WPI), with WPI trading from today as PGG Wrightson Wool.
For some months since the failure of the Wool Partners Co-operative to raise cash to buy WPI, PGGW had left the door open for growers to submit a "plan B" proposal to buy WPI.
That phase had now closed, PGGW managing director George Gould said yesterday.
The failed Wool Partners Co-operative had wanted to become a new strong-wool marketer, but fell short of the threshold of 65 million $1 shares being subscribed to within a year of launching.
PGGW had expected a new plan to emerge, but that had not occurred, resulting in the rural services company buying the remaining minority stake in the company it did not already own.
"Whilst we will always strive to ensure that PGG Wrightson Wool meets our client growers' needs on farm and in the marketplace, our wool business is not for sale. PGG Wrightson is back in the wool business, fair and square," Mr Gould said.
PGGW also announced it had agreed, in principle, to place Wools of New Zealand into a growers' trust for the benefit of strong-wool growers.
Details of the trust, including its objectives and beneficiaries, were still being settled, but the overall intention was that Wools of New Zealand, in 100% grower ownership, would provide the basis for national wool-grower unity that had "long been the aim" of those who sought grower ownership of WPI, he said.
"We see this as a win-win.
PGG Wrightson can focus on what it's done for 150 years, to be a first-class wool broker, and growers can regain control of the destiny of strong-wool marketing in this country," Mr Gould said.
Wool exporter Bloch and Behrens, also wholly owned by PGGW, was unaffected by the announcement.
PGGW has sold its half-share in New Zealand Merino to Merino Grower Investments Ltd, putting that company in the hands of its grower shareholders.
