Fletcher Building seeks clearance for Waikato Aggregates

29 November 2018
Release No. 82

Fletcher Building seeks clearance to acquire the business of Waikato Aggregates

The Commerce Commission has received a clearance application from Fletcher Building Limited (Fletcher Building) to acquire all the assets and employees of Waikato Aggregates Limited (Waikato Aggregates), including the right to extract and process sand from the Tamahere quarry. However, Waikato Aggregates will maintain ownership of the underlying land of the quarry.

Fletcher Building is a limited liability company listed on the New Zealand Stock Exchange and the Australian Securities Exchange. Fletcher Building operates in various parts of the construction industry and its business can be segmented into building products, laminates and panels, plasterboard, steel, concrete, residential and development, and construction.

Waikato Aggregates is a privately owned company which owns and operates a sand quarry at Tamahere, located just south of Hamilton. The Tamahere quarry produces and processes sand, along with a small amount of other aggregates such as pebbles and stones.
Waikato Aggregates is a supplier of sand in the Waikato and Bay of Plenty regions, while Fletcher Building is mainly a customer of sand in these areas and uses it to manufacture and supply ready-mix concrete, concrete blocks and pavers, and concrete pipes to its customers.

A public version of the clearance application will be available shortly on the Commission’s case register.

Background
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.

Further information explaining how the Commission assesses a merger application is available on ourwebsite.

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