The Commerce Commission has approved Mohawk Industries' acquisition of all shares in NZX-listed Bremworth, clearing the way for the deal to proceed through Mohawk's local subsidiary Godfrey Hirst.
The regulator delayed its decision while examining whether combining Godfrey Hirst and Bremworth would significantly reduce competition in New Zealand's soft flooring market, particularly for woollen carpet.
The two companies have competed mainly in wool carpet since 2020, when Bremworth stopped making synthetic carpet. Bremworth restarted limited synthetic production last year.
Commission convenor Dr Derek Johnston said the deal would remove direct rivalry between the country's two biggest wool carpet suppliers, but competition from synthetic and imported carpet would continue to constrain the merged business. "After assessing all of the information before it, the commission considers that the loss of competition as a result of the proposed acquisition is unlikely to constitute a substantial lessening of competition in the wider soft flooring market," he said.
Wool carpet no longer dominates the New Zealand market, with synthetic carpet now representing the majority of sales.
Bremworth has announced discussions to extend the scheme implementation agreement following the regulatory delays. The deal must complete by 7 August or either party can walk away, causing the takeover to lapse.