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Shares in Fletcher Building hit an all-time high yesterday after news of another multi-billion dollar deal among international building products giants.
Shares in the company rose 36c to $12.20 after the £8 billion ($21.5 billion) takeover of Britain's Hanson by German cement maker HeidelbergCement to create the world's second-largest company in construction materials.
The deal is believed to be the biggest in the sector.
Hanson employs 26,000 people, operates primarily in North America, the UK and Australia and is one of the world's largest suppliers of heavy building materials, with turnover last year of £4.1 billion.
The deal follows the proposed £7 billion takeover of Australia's Rinker by Mexican company Cemex.
While Fletcher Building was not in the same league, the recent deals had implications for Fletcher's share price, said Macquarie Equities director of investment Arthur Lim.
"Internationally the building and construction sector is going through a period of consolidation and it has the potential to flow into Australia and on to New Zealand."
Fletcher Building shares rose last week after news that tax credits and insurance payouts would add $94 million to the current year's net profit.
