PGG Wrightson closes down offices in Australia

New Zealand agribusiness company, PGG Wrightson, has closed its Australian real estate and livestock divisions.

 

PGG Wrightson's Victoria and southern New South Wales real estate manager Andrew Gilmour said the decision was made as the parent company requires all resources to work the New Zealand-based business and the Australian business was classified as 'non-core'.

 

PGG Wrightson has closed seven offices in New Zealand before Christmas, and more could be closed down, Gilmour said.

 

The decision was made in mid-January and was of immediate effect.

 

The company confirmed the closings, attributing the move to current market conditions and an adverse outlook.

 

However, the company said existing commitments to clients will be honoured and arrangements will be made to transition clients to other service providers.

 

PGG Wrightson said the decision to exit Australia's real estate and livestock business will have no impact on PGG Wrightson Seeds, which will continue to operate.

 

The move will also not affect the business in New Zealand.

 

The global financial crisis and the fallout from a failed merger with Silver Fern Farms last year have impact PGG Wrightson.

 

The company has now made a formal offer of mediation and US$10 million to Silver Fern Farms over claims arising from the uncompleted deal.