Proposed merger of ports of Tauranga and Auckland shelved

Ports of Auckland had approached Port of Tauranga, with the backing of Auckland Regional Holdings and Auckland Regional Council, on the grounds that such a merger would deliver obvious synergies, cost savings and benefits to all of New Zealand.

“We saw an opportunity to do something that would benefit New Zealand. Tauranga’s decision to withdraw, despite solid evidence of the benefits to shareholders and ratepayers in both regions, is disappointing,” said Judd, confirming that Ports of Auckland would not be pursuing its planned acquisition of Port of Tauranga’s container business.

Although there was wide industry agreement over the need for rationalisation within the port sector, Jud said that comments by Port of Tauranga, made in August 2008, indicating that such an acquisition would be highly unwelcome, along with the deteriorating external economic environment, were factors behind the decision.