KEY POINTS:
Port of Tauranga will report to the market on the proposed merger with Ports of Auckland in March but a speedy completion is not expected, says chairman John Parker.
Parker told the stock exchange yesterday that talks were "progressing in a constructive and positive manner".
"We expect this work will take some months to complete and we will advise shareholders when merger terms have been agreed," he said.
Merger talks were delayed because the two parties had not realised the complexities of the process, Parker said.
The decision by giant container shipping line Maersk last month to put the bulk of its services through Ports of Auckland, at the expense of Port of Tauranga, had "absolutely nothing to do" with the delay, he said.
The market's expectations of a speedy process were "slightly unrealistic" because so many vested interests were involved in the merger.
"We underrated the complexities of the process.
"There are so many bodies involved," said Parker.
It was understood that the ports had planned to have a merger proposal ready for their respective boards late last month.
Ports of Auckland chairman Gary Judd said both companies recognised the potential for significant efficiency gains and the importance of ensuring the dynamics of the New Zealand port sector are determined by New Zealand interests.
Auckland Regional Holdings chairwoman Judith Bassett said it supported the merger discussions between the two parties and looked forward to advancing mutual understanding.
Goldman Sachs analyst Marcus Curley said it was "clear"' that Maersk's decision had caused the ports to rework the "initial planned merger proposal".
The ports would probably be re-working the merger terms early in the new year and presenting the proposal to both boards in late January or early February, he said.
"You can accurately assume that the move by Maersk to Auckland away from Tauranga weakens the position of Tauranga shareholders, and strengthens the position of Auckland Regional Council," said Curley.
Port of Tauranga chief executive Mark Cairns has said that the deal had to be a merger of equals.
