[5 July/NBR]

Barenbrug Group confirmed its interest in PGG Wrightson’s seed unit. PGG Wrightson had hired First NZ Capital and Credit Suisse Australia to help with a strategic review. This can be seen as a move to invite offers from buyers for part or all of the company. Barenbrug is an innovative market leader with a global market share of 12.5 percent. Chief Executive of Barenbrug’s New Zealand Unit, Michael Hales, said the company was interested in the PGG Wrightson seed business. The seed and grain segment was PGG Wrightson’s most profitable business. Chief Executive of Cropmark Seeds, Glen Jarvis, said there was a great deal of speculation around the future of PGG Wrightson’s seed division. He added a merger would have significant implications for the local market. Mr Jarvis noted PGG Wrightson and Agriseeds both had businesses that competed with Cropmark.