KEY POINTS:
South Canterbury Finance has bought Nelson-based Fairfield Finance Ltd, a week after purchasing another Nelson-based finance firm.
The Fairfield purchase for an undisclosed sum follows South Canterbury buying part of the lending book of Finance and Investments last Wednesday.
The two acquisitions amount to only about 1 per cent of South Canterbury's total assets.
Chief executive Lachie McLeod said the contraction of finance markets and rising industry compliance costs meant small finance firms were seeking support, or amalgamation, with large companies.
The Fairfield purchase secures the investments of around 450 investors who will have the choice to transfer their investment to South Canterbury Finance.
Fairfield has total assets of close to $18 million.
Mr McLeod said the latest acquisitions would cement the growing strength of South Canterbury's local subsidiary, Tasman Bay Finance, which was established two years ago and covers Nelson, Marlborough and the West Coast.
"We are now very well positioned in the top of the South Island business, rural and personal lending markets."
- NZPA
