Port of Tauranga downplays merger speculation

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Port of Tauranga chief executive Mark Cairns says merger talks between itself and council-controlled Ports of Auckland is not on the cards at this stage, quashing recent media speculation.

The announcement filed with the NZX today follows a report in the National Business Review, which said a merger of the port companies was being considered based on the minutes from a recent Auckland Council committee meeting.

"We haven't had any contact from Ports of Auckland and the note on the newswires came as a surprise to us," Cairns said.

"We didn't want to comment on the issue but had to because our share price has spiked in the last few days."

Shares in Port of Tauranga, the country's biggest export hub, rose 1.1 per cent today to $9.05, a fresh historic high, and have gained 19.5 per cent so far this year.

The rumours of a merger come after initial discussions on the feasibility of merging the two port operations in 2007 failed to get off the ground.

"We think there is significant benefit for shareholders of both companies and New Zealand - that hasn't changed - but there is nothing on the horizon," Cairns said.

He also noted that there was local legislation in Auckland which had placed a moratorium a possible merger, and would need to be addressed before any real deal could progress.