Lowe Corporation gets green light to increase its share of leather industry
New Zealand's Commerce Commission has given tannery business Lowe Corporation permission to make an offer for Colyer Mair, the leather-processing arm of investment company Richina Pacific. However, Alastair MacCormick, chairman of Richina, emphasised that while his company was open to offers, no deal was yet in place.
The purchase of Colyer Mair would give Lowe Corporation, based in Hawkes Bay, an additional 20% share of the leather industry. Lowe's director, Graeme Lowe, said that the acquisition would fit well with the company's strategy to move into leather after selling its meat slaughter and processing operations to Richmond in 1998.
Colyer Mair, based in Auckland, is the oldest and largest leather processing operation in New Zealand. Last year the division was the best performer for Richina thanks to favourable exchange rates and good quality hides. Turnover rose 27% to $138 million for the year to December 31. The company also has investments in meat processing companies from whom it buys skins and hides.
