People found it extraordinary that the Commerce Commission - an organisation charged with preserving competition throughout all industries - could make such a decision, Mr Kirke, of Wanaka, said.
Already, New Zealand's largest carpet manufacturer, Godfrey Hirst, has announced it intended appealing the decision.
WSI was "certainly not assuming" the company would be dismembered and CWH would have a wool scouring monopoly.
"It's much too early to make that assumption," Mr Kirke said.
CWH was just one of a number of contestants and would be facing stiff competition to acquire control of WSI's assets.
"Any proposal from Cavalier must be assessed against the bids the receivers of Plum Duff and Woolpak Holdings receive for the 64% shareholding offered for sale. All offers are part of a strongly contested bidding process."
Last month, CWH made a $40 million conditional offer for the assets and liabilities of WSI. Cavalier Corporation managing director Wayne Chung said the Commerce Commission's decision paved the way for CWH to now proceed to negotiate its offer "with increased confidence and more certainty".
The decision marked the outcome of a costly and time-consuming process for all involved and would be seen in the wool industry as substantially reducing options and competition in the scouring market, if CWH was successful in creating a monopoly, Mr Kirke said.
WSI was New Zealand's largest single wool exporter and had materially improved its financial performance over the last 12 months. It had been trading extremely profitably and successfully.
One of the motivations for CWH in obtaining a monopoly was the fact WSI had been taking substantial market share in scouring away from the company, he said.
The company would continue to focus on operating as a successful business. The sale process was going on "on the periphery' and as far as the board was concerned, it was "business as usual".
Godfrey Hirst was "extremely disappointed" with the Commerce Commission's decision.
"We are struggling to see how a regulatory body can allow for a monopoly in a key New Zealand industry, which will have implications not only for direct users of New Zealand scouring but also for the wool growers, manufacturers and end users of products which utilise New Zealand coarse wool," general manager Tania Pauling said.
