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New Zealand's largest transport and logistics company, Toll New Zealand, has claimed an operational stake in Northern Southland Transport, a major South Island transport company.
Northern Southland Transport chief executive Peter Carnahan said a sale of the company's general freight, container handling, and warehouse operations had been made to Toll New Zealand.
Toll New Zealand, which bills itself as the country's largest transport and logistics company, is set to acquire Northern Southland's general freight business, subject to conditions, on October 3.
Northern Southland Transport Holdings Ltd has about 180 vehicles and predominantly operates from its flagship hub in Christchurch, with branches in Greymouth, Timaru, Dunedin, Invercargill, Cromwell, Wanaka and Queenstown, among others, Mr Carnahan said.
The company had decided to sell "about half of our actual business" as part of a strategic move to refocus on its core rural freight and waste disposal services. General freight depot branches in Dunedin, Cromwell, Wanaka, and Queenstown, would now be run by Toll NZ.
Financial details of the sale would not be disclosed, Mr Carnahan said.
Northern Southland would retain its rural transport operations, such as delivery of livestock and fertiliser, alongside Cromtrans - the company's waste handling subsidiary operation.
The sale had benefits for both companies, Mr Carnahan said.
"[We are] keen to refocus ... while Toll is seeking to expand and strengthen its network throughout the South Island.
"This acquisition affords Toll a direct presence in Central Otago for the first time and offers them an established network and operation," Mr Carnahan said.
Services would continue to operate from existing premises in Christchurch, Cromwell, and Queenstown, as Toll acquired leases to the relevant parts of the business.
The sale did not affectrubbish, rural operations, or local fuel supply, Mr Carnahan said.