South Island-based Pyne Gould Guinness' appointment of 10 new stock agents in the Waikato is part of a wider plan to expand in the North Island, says the company's chief executive, Hugh Martyn.
Despite the fact that the new staff had previously worked for Williams & Kettle - which has
just been taken over by Wrightson - the move was not opportunistic, Martyn said.
"We said at the half year that we were open to opportunities in the North Island. We saw that the sector was going to rationalise and, funnily enough, that hasn't changed over the last few months."
Martyn confirmed that the rural services company was investigating more options for expansion in the North Island.
He declined to comment on market speculation that Pyne Gould might look to amalgamate operations with the Fonterra- owned rural services company RD1.
Pyne Gould and RD1 teamed up last December to mount a joint bid for control of Williams & Kettle, a bid that was eventually trumped by Wrightson.
Since the amalgamation of Wrightson and Williams & Kettle, there has been speculation that Pyne Gould will make another move to take part in the rationalisation of the industry. Some investors have picked Hawera-based Allied Farmers as a possible takeover target.
Martyn would not comment on that speculation.
"As opportunities arise, whether they be big or small, we'll consider them," he said.
Pyne Gould already had operations in the North Island although 10 new staff was a significant increase, Martyn said.
The company already has between 10 and 20 people working in the North Island.
