The Commerce Commission has approveda proposed merger between &lt;Progressive Enterprises Ltd> and
&lt;Rainbow Corp Ltd>, Rainbow said in a statement.
    The merger involves the formation of a new company &lt;Astral
Pacific Corp Ltd> which will acquire all shares in both
companies on a one-for-one share exchange basis.
    Rainbow earlier this week lifted its stake in Progressive
to 52 pct from 44 pct. The statement said a new private
company, &lt;Transcapital Corp Ltd>, fully owned by Rainbow
directors Craig Heatley, Gary Lane and Ken Wikeley, will
purchase this stake for an undisclosed cash sum.
    The Commission has also approved Transcapital acquiring up
to 45 pct of Astral Pacific, Rainbow said.
    &lt;Brierley Investments Ltd>, which has been a frequent
critic of the merger, launched a full bid for Progressive at
4.20 N.Z. Dlrs a share last Monday.
 REUTER
