An application by Gallagher Holdings to acquire 100 per cent of agriculture technology rival Tru-Test has been declined for a second time by the Commerce Commission.
Chairwoman Paula Rebstock said the commission was not satisfied the acquisition would not substantially reduce competition in the manufacture and wholesale of rural and
security electric fencing products.
Gallagher deputy chief executive Steve Tucker said he was surprised by the decision.
"Obviously, we're disappointed. But it's really hard to say where we go from here as we really haven't seen any real substance, or reasons, behind the decline from the commission."
Tucker said it might take weeks to get the full details and hinted the fight might not be over as there were still "multiple avenues to pursue".
He said Tru-Test had been "pretty aggressive' in lobbying the commission.
Tru-test managing director Des Scott denied the company had lobbied for the result.
"The commission is an independent body and has its own investigators.
"It's just a case of answering their questions. You don't get to do anything other than answer their questions."
Scott said he was happy to put the issue to bed.
In an attempt to meet the commission's concerns regarding reduced competition, Gallagher had offered to divest Tru-Test's electric fence business, Stafix.
In the first application, Gallagher offered to divest another Tru-Test brand, PEL.
"Over two applications they've offered to divest two of our three [electric fencing] brands and I guess the only way they could succeed would be to divest all of them," Scott said.
Gallagher owns 14.7 per cent of Tru-Test.
