AWEX and AWTA merger talks stall over funding dispute

Merger discussions between the Australian Wool Exchange (AWEX) and testing company AWTA Ltd have stalled despite potential annual efficiency gains exceeding $1 million. Talks, initiated late last year, faltered after AWEX sought a guaranteed $1 million yearly investment from AWTA for traceability proposals. AWTA agreed to consider such investments but insisted on board approval for individual proposals, leading to an impasse.

AWEX CEO Mark Grave confirmed the board decided not to proceed, prioritizing member value. AWTA managing director Michael Jackson stated the merger aimed to streamline operations, reduce duplication, and benefit industry participants. AWTA had proposed integrating AWEX as a division within its structure, retaining staff and operations under a single board.

Industry leaders, including Josh Lamb, Rowan Woods, and Steve Harrison, urge continued talks, emphasizing the need for rationalization amid declining wool production. Woods stressed eliminating duplication, while Harrison, an AWTA board member, vowed to push discussions forward in growers’ best interests.

Though no further meetings are scheduled, industry sentiment suggests the merger remains a possibility to strengthen the sector’s future.