USG & Boral granted clearance to form a joint venture
USG Corporation and Boral Limited granted clearance to form a joint venture
Issued 21 February 2014
Release No. 77
The Commission has granted clearance to USG Corporation (USG) and Boral Limited (Boral) to enter into a joint venture.
The proposed joint venture relates to the two parties’ operations in Asia, India, the Middle East and Australasia for the supply of plasterboard, ceiling tiles and ancillary building products such as metal studs and tracks, metal ceiling grids and metal ceiling battens.
The Commission found no significant overlap between USG and Boral in the plasterboard and ceiling tile markets, therefore focused its investigation on the supply of metal building products because the proposed joint venture would give USG Corporation an interest in Rondo Building Services Pty Limited. At present, both USG and Rondo supply a range of metal building products in New Zealand.
The Commission is satisfied that the proposed joint venture will not have, or would not be likely to have, the effect of substantially lessening competition in separate markets for the supply of metal studs and tracks, metal ceiling battens, and metal ceiling grid.
“In all three of these markets, the proposed joint venture would face competition from a number of different suppliers including both domestic manufacturers and importers” said Commerce Commission Chairman Dr Mark Berry.
A public version of the written reasons for the decision will be available shortly on the Commission’s website:http://www.comcom.govt.nz/business-competition/mergers-and-acquisitions/clearances/clearances-register/
USG Corporation is a supplier of a range of building products and is based in the United States. In New Zealand, USG Corporation primarily supplies ceiling tiles and metal building products.
Boral Limited supplies a range of building products and is based in Australia. Boral Limited has a shareholding in Rondo Building Services Pty Limited which, like USG Corporation, supplies a range of metal building products in New Zealand.
The metal studs and tracks, metal ceiling grids and metal ceiling battens supplied by USG Corporation and Rondo Building Services Pty Limited are used in the construction of interior walls and partitioning as well as interior ceilings.