The Commerce Commission has granted clearance for Fletcher Building Limited to acquire up to 100 per cent of the ordinary shares of the Crane Group Limited.  

Commerce Commission Chair Dr Mark Berry said the Commission was satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in any of the relevant markets.

The Commission's investigation focused primarily on the manufacture and supply of pipes and pipe systems.

Dr Berry said that the Commission considers the merged entity is likely to be constrained by the presence of existing competitors who have the ability to easily expand, and the countervailing power of large customers.

A public version of the written reasons for the decision will be available as soon as practicable on the Commission's website at www.comcom.govt.nz/clearances-register  

Background

Fletcher Building (Australia) Pty Limited is a wholly owned subsidiary of Fletcher Building Limited, a large New Zealand based building and infrastructure company. In New Zealand, Fletcher Building manufactures and distributes a range of building and construction products including pre-cast and ready mix concrete, steel, wood panels and laminates, roofing, and general timber and hardware products. Fletcher Building has a subsidiary, Humes, which manufactures and supplies concrete pipes.

Crane Group is an Australian based manufacturer of building products. Crane Group manufactures a range of plastic pipes and pipe systems through its wholly owned business, Iplex Pipelines. Crane Group distributes pipes and pipe systems through its nationwide networks, MasterTrade and Mico Pipelines.