Fletcher Building seeks clearance to buy Stevenson division

The $3 billion listed building materials manufacturer and distributor Fletcher Building is bidding for one of Auckland's largest concrete operations.

Fletcher Concrete and Infrastructure has sought Commerce Commission clearance to buy the building products division of Stevenson Building Products, which has a large share of the city's booming construction market.

Last month, Stevenson, an 88-year-old Auckland firm, said it would sell the division but retain its other interests.

Fletcher Building chief executive Ralph Waters said the offer was being handled by Fletcher Construction chief Mark Binns, who was on his way back from the Fletchers operations in Peru. The commission said yesterday that Fletcher already had extensive interests in the same sectors in which Stevenson operated.

Waters confirmed this, saying Fletcher subsidiary Firth Industries worked in the same sector.

"But it's a matter of getting clarity of which areas the commission might be concerned about and undertakings we would give to resolve those concerns," Waters said.

Firth makes ready-mixed concrete, prestressed concrete, blocks, bricks, pavers, retaining walls and other products. Stevenson competes directly with Fletcher in several product categories and lines but other businesses in the sector include Holcim, Atlas and Allied Concrete.

The commission noted the geographic spread of Stevenson's businesses.

"The key areas relevant to its clearance application are its Northland, Auckland and Christchurch operations in cement, concrete products and retailing of building products," the commission said.

"Stevenson's building products division's key business activities are the manufacture and supply of concrete products located in Northland, Auckland and Christchurch. It also has retail sales yards in Auckland and Christchurch."

A Stevenson spokeswoman said no definite bids had been made by any parties yet but interest was strong from Australia. Fletcher was just one of a large group of potential bidders.

The commission says it will announce a decision soon, probably on July 5.