Carter Holt Harvey cleared to buy Tenon's sawmills

Carter Holt Harvey has been given the all clear by the Commerce Commission to buy Tenon's sawmills.

Carter Holt said in a statement today the commission had given it clearance to buy the structural solutions business and assets of Tenon. This comprises a Kawerau sawmill and remanufacturing plant, the Rainbow Mountain sawmill near Rotorua, a Mt Maunganui plywood mill and roundwood plant.

In May, Grant Samuel valued the business at between $123 million and $144 million.

Carter Holt said in the statement the clearance application was made to provide flexibility to explore whether there was an opportunity for investment.

No bidders have publicly confirmed they are in the sale process, but Australian private equity firms Pacific Equity Partners and Gresham have also been rumoured to be interested parties.

Carter Holt has cash to spare after selling its tissue business for more than $1 billion in M arch.

Tenon is the former Fletcher Challenge Forests, rebranded to fit its new direction as a wood processing and marketing company after it sold its forests.

Shares in Tenon were up 2c to $2.18 at midday, while Carter Holt shares had lost 1c to $2.02.

- NZPA