The seafood company denies any wrongdoing and says it will "vigorously" defend the case.

South Island-based fishing giant Sanford will buy Pacifica Seafoods mussel and oysters businesses for $85 million.

Last week Sanford received clearance from the Commerce Commission to buy the business, which is part of the Skeggs Group of companies.

The purchase agreement is conditional on pre-arranged funding arrangements become unconditional by Wednesday this week.

Supply competition for domestic mussel consumers is the primary concern of the Commerce Commission in its investigation of the planned take over of Pacifica Seafoods Group by listed fishing company Sanford.

Sanford said it wants to take over the Skeggs family’s company in order to expand its mussel farming and processing capacity.

The New Zealand sharemarket fell to its lowest level in 10 months during a mixed session in which companies reporting disappointing results were punished.

The benchmark NZX-50 index recovered to close up 23.646 points, or 0.8%, at 3034.833. Turnover was worth $92.9 million. There were 47 rises and 39 falls among the 108 stocks traded.

Sanford closed down 4.3%, or 19c, at 427 after reporting a sharp fall in profit yesterday, while Mainfreight fell 3c to 596 after reporting a 2.5% increase in annual profit.

Fishing company Sanford reported a 79.4% drop in interim profit but has maintained its interim dividend at 9c a share.

The net profit after tax of $5.3 million in the six months to March 31 was down from $26.0 million last year.

Earnings before interest, tax, depreciation and amortisation decreased to $10.3 million from $43.6 million last year. Foreign exchange gains totalled $7 million this period compared with $6.5 illionm last year.