On 9 June 2011, the NZ Commerce Commission authorised an application by Cavalier Wool Holdings Limited (‘Cavalier Wool’) to acquire all of the wool scouring assets of New Zealand Wool Services International Limited (‘WSI’). As Cavalier Wool and WSI were the only remaining operators supplying wool scouring services in New Zealand, the purchase and rationalisation would leave Cavalier Wool as the nation's sole wool scourer. The Commission determined that although the merger would substantially lessen competition, it would result in a benefit to the public. The benefits considered by the Commission included the reductions in production cost resulting from the merger. However, a major carpetmaker, Godfrey Hirst, has challenged the merger on grounds that the merger would remove a strong competitor from the market and that neither existing nor potential competitors would sufficiently constrain the merged entity. The challenge will be heard in the High Court of New Zealand on 22 August 2011. The sale of WSI to Cavalier Wool has been stayed temporarily pending outcome to the challenge.