The Commerce Commission has published a statement of preliminary issues relating to an application received from Fletcher Building Australia Pty Limited seeking clearance to acquire 100 per cent of the ordinary shares in Crane Group Limited. Fletcher Building and Crane Group both manufacture and supply a broad range of building materials in New Zealand and Australia. The application largely relates to the manufacture and supply of pipes and pipe systems.

The statement of preliminary issues outlines the key competition issues the Commission currently considers will be important in deciding whether to grant clearance. The Commission's statement of preliminary issues and the public version of the application can be accessed via the Commission's website at www.comcom.govt.nz/clearances-register

The Commission invites submissions from parties who consider that they have information relevant to the Commission's consideration of this matter. Submissions can be sent to registrar@comcom.govt.nz with the reference Fletcher/Crane in the subject line of your email or to PO Box 2351, Wellington 6140 by Friday 28 January 2011.

Background

Fletcher Building (Australia) Pty Limited is a wholly owned subsidiary of Fletcher Building Limited (together referred to as Fletcher Building), 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.