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Fletcher Building could be interested in buying parts of Carter Holt Harvey but its chief executive yesterday ruled out a complete bid for the $2 billion of assets up for grabs.
Fletcher CEO Jonathan Ling said confidentiality issues around the sale of Carter Holt's assets barred him from saying much about the deal.
But his firm is understood to be interested in only some parts of Carter Holt and is not considering a joint venture bid with giant Australian manufacturer Boral.
Carter Holt owner Graeme Hart is selling wood-based building items manufacturer and marketer Wood Products New Zealand, which has 12 manufacturing sites, Wood Products Australia, which has six, New Zealand's Carters building materials chain and Interion, which markets and sells furniture, joinery and construction products.
Ling said he was watching reports yesterday that Boral had asked Australia's competition regulator to look into competition aspects of a potential acquisition of the Carter Holt assets.
Indicative offers for the assets, in what is expected to be a $2 billion-plus deal, were due last week.
Boral added that its board had yet to consider or approve any proposal in regard to Carter Holt.
Fletcher is seen to be more likely to bid for some retail parts of Carter Holt, particularly some highly profitable Carters building supply stores.
Fletcher is understood to be attempting to avoid any potential anti-competition moves which could mean it would increase its monopoly positions in certain business sectors if it bid for all of the Carter assets.
Hart's Rank Group has told Carter Holt staff it wants to complete a sale by the end of the year.
FOR SALE
* Graeme Hart is selling about $2 billion worth of Carter Holt Harvey wood product and distribution assets.
* Australian manufacturer Boral has asked competition regulators to look into a potential acquisition.
* Fletcher Building has denied reports it is teaming up with Boral to buy the assets but says it could be interested in buying some of them.
* Hart wants a complete sale by the end of the year.
- Reuters
