Gallagher Group, the privately held agricultural equipment firm, will exit its 12 per cent stake in rival Tru-Test Corp as a condition of buying Australian firm Country Electronics.

The Australian Competition and Consumer Commission (ACCC) wouldn’t oppose Gallagher’s acquisition of Country Electronics, which trades as Thunderbird, after accepting the Hamilton-based group’s offer to divest its Tru-Test stake, the regulator said in a statement.

Gallagher chairman and chief executive Sir William Gallagher says Thunderbird won’t be a big percentage of the group, but it offers access to the bottom end of several markets, particularly Australia.

“It’s more complementary with us – we’re the premium brand,” he said.

Gallagher lifted its annual revenue 6.9 per cent to $NZ187 million ($A174.64 million) in 2012.

The Thunderbird acquisition is dependent on the sale of the Tru-Test holding, which Sir William said he expects to come through early next year.

Without the divestiture, the ACCC thought Gallagher could unilaterally raise prices and reduce service in an already concentrated market.

Gallagher is the second-biggest shareholder in Tru-Test, according to filings with the Companies Office.

This year Tru-Test doubled in size after buying Dairy Technology Services in January for some $NZ73m, and has been on the hunt for more acquisitions.