The long-proposed operational merger between the South Island's two biggest ports is one small step closer, with Lyttelton Port getting the go ahead from its major shareholder.The Lyttelton port is looking to merge with Port of Otago and the listed port c
The long-proposed operational merger between the South Island’s two biggest ports is one small step closer, with Lyttelton Port getting the go ahead from its major shareholder.
The Lyttelton port is looking to merge with Port of Otago and the listed port company (NZX:LPC) today confirmed that Christchurch City Holdings – its major shareholder and investment arm of the city council – was “in principle supportive” of the proposed merger.
A merger has been in the works for some time and late last year the Lyttelton port conceded that talks were taking longer than expected, although “good progress” was being made.
A detailed report on the merits of the merger was commissioned last year and while neither port had revealed any of the details from that report, a joint statement released in February said that after considering the report prepared as part of the first stage of the proposal, they were moving onto the next stage with the “utmost urgency”.
All current negotiations and discussions between the two companies are being kept strictly confidential.
There are still a number of significant hurdles to overcome before any merger can go ahead, with both Commerce Commission approval and shareholder support still required.
