Finance companies to merge

Allied Nationwide Finance Ltd, a wholly owned unit of Allied Farmers Ltd, is partnering with South Island-based rural finance provider Rural Livestock Finance Ltd.

Allied Nationwide chief executive John Mallon said a funding relationship gave his company access to an established network in the South Island.

Allied Nationwide Finance has an option to take an equity interest in Rural Livestock Finance.

Rural Livestock Finance gains access to the management and administration capability of Allied Nationwide through a management services agreement.

Rural Livestock Finance was established in 2006 and provides seasonal finance for South Island farmers.

Its parent Rural Livestock Ltd is the largest privately owned stock and station firm in the South Island, according to its website.

The Rural Livestock Finance business is principally targeted at sheep and beef farmers, with minimal current exposure to the dairy sector.

- NZPA