The Commission will consider whether the acquisition would be likely to substantially lessen competition in any relevant market in breach of section 47 of the Commerce Act.
Mr Ferrier did not apply for clearance for the acquisition, which occurred on 28 September 2018.
Mr Ferrier also owns 100% of New Zealand Wool Dumping Limited. Wool dumping is the compression of wool bales into a smaller package size so that more bales can fit into a shipping container for export.
The focus of the investigation will be on the extent to which wool dumping and wool scouring constrain each other and whether the merger would enable the owner of New Zealand’s only wool dumping operation and majority owner of New Zealand’s only scouring business to raise prices or lower the quality of either of those services.