New Zealand, New Zealand Rugby Union to Merge

January 2006

auckland - Following several sucessful joint ventures, the anticipated merger of the New Zealand Rugby Union and New Zealand was announced today at a joint press conference held by the heads of both companies.

In recent times the NZRU and NZ have co-operated closely on intiatives such as the 2005 Lions tour, securing the 2011 Rugby World Cup, and inciting nation-building postcolonial antipathy towards the British. A full merger of their operations was a logical next step, according to NZRU chairman Jock Hobbs.

"The global rugby market is a highly competitive place, and to stay ahead of the game we need to be innovative", he said. "Whether that means using dummy runners in the backline, composing a new, postmodern haka, or undertaking a corporate merger with an entire nation, we have to do what it takes".

The new company, to be renamed NZ All Blacks Inc, will initially have its headquarters in Auckland, though Hobbs would not rule out a move offshore to be nearer principal markets in the Europe and Japan.

Current NZRU chief executive Chris Moller is exected to continue as head of the new company, while it is rumoured that a high-level management position will be found for experienced New Zealand CEO Helen Clark.

Market analysts say that the merger offers clear benefits for both parties. The NZRU will increase its annual turnover by over $110 billion, while New Zealand shareholders will reap the benefit of rugby's greater brand recognition, stronger identity, and better cultural harmony.

Not all responses have been positive, with criticisms of the deal coming from both camps. Some of the NZRU's provincial sub-unions have questioned the wisdom of the merger with New Zealand, raising doubts about the long-term viability of what they call "a sheep carcass-exporting operation with large overheads".

"I'm concerned that there hasn't been due diligence" said Bay of Plenty Rugby Union chief executive Paul Abbot. "It's well known that stocks in small nation states have been declining for some time".

On the New Zealand side, it is rumoured that not everybody is entirely happy with the prospect of a rugby-oriented restructuring. But NZ senior manager Trevor Mallard scoffed at such suggestions, giving assurances that "all four million of our shareholders are fully committed to making rugby our core business going forward".

Whatever the doubts, the consensus of experts is that the merger will leave both parties better placed to ride out future threats, such as a downturn in the global economy, an epidemic of foot and mouth disease, or a resurgence in Australian forward play.