Mohawk Industries has received regulatory approval to acquire Bremworth, bringing one of New Zealand’s best-known wool carpet manufacturers a step closer to leaving the stock market. However, the transaction still faces a critical completion deadline in early August.
The New Zealand Commerce Commission granted clearance on 30 June for Floorscape Limited, a wholly owned subsidiary of Mohawk Industries, to purchase all shares in Bremworth. Mohawk already owns Godfrey Hirst, Bremworth’s long-standing domestic competitor in New Zealand’s wool carpet market.
Competition Concerns Eased by Changing Flooring Market
The proposed acquisition initially raised competition concerns because Bremworth and Godfrey Hirst have competed directly in the New Zealand wool carpet sector for decades.However, the Commerce Commission concluded that today’s flooring market has evolved significantly. Imported synthetic carpets now dominate flooring sales, providing consumers with alternative choices and limiting the market power of a combined Bremworth-Godfrey Hirst business.
According to Commission Convenor Dr. Derek Johnston, competition from imported flooring products, together with retailers’ ability to switch between wool and synthetic products, means the acquisition is unlikely to substantially reduce competition across the broader soft flooring market.
Read more: American flooring producer Mohawk’s Q3 sales up 9.4% to $2.8 bn
Bremworth’s Financial Challenges Led to Sale
The approval comes after several difficult years for Bremworth.The company repositioned itself as a premium all-wool carpet manufacturer in 2021, moving away from synthetic flooring in an effort to capitalize on sustainability and natural fibre demand. Despite the strategic shift, revenues declined significantly, falling from approximately NZ$148 million in 2018 to around NZ$80 million in 2024.
Bremworth also suffered major operational disruption after its Napier spinning plant was severely damaged during Cyclone Gabrielle in 2023. Although the company later secured an insurance settlement of approximately NZ$104 million, the disaster intensified existing financial pressures.Investor dissatisfaction eventually resulted in a board overhaul and opened the path toward a sale.
August Deadline Still Critical
The acquisition is being completed through a scheme of arrangement, requiring shareholder approval alongside regulatory clearance.
Under the agreement, Bremworth shareholders are expected to receive total consideration of approximately NZ$1.05–1.15 per share, with the possibility of an additional capital return of 30–40 cents per share, depending on the company’s final financial position.
However, the transaction must be completed before 7 August 2026. If the scheme is not implemented by that date, either party has the right to terminate the agreement. Bremworth has been seeking an extension after regulatory reviews consumed much of the available timetable.
Future of New Zealand Wool Carpet
If completed, the acquisition would place much of New Zealand’s domestic wool carpet manufacturing under a single global owner.
Supporters argue that Mohawk’s global scale could strengthen the long-term competitiveness of New Zealand wool carpets against lower-cost imported products. Others see the transaction as the loss of one of the country’s last major independent wool carpet manufacturers.
The deal is also significant for New Zealand’s strong wool industry, with approximately 5,000 wool growers supplying fibre to domestic carpet producers. Industry observers will be watching closely to see whether Mohawk continues Bremworth’s premium all-wool strategy or integrates the brand into its broader global flooring portfolio.
