Regulator clears Fletcher pipe plant proposal

Friday 4th March 2011

The Commerce Commission has cleared an application by a joint venture including a Fletcher Building subsidiary to buy a concrete pipe plant in Hamilton owned by the subsidiary.

The 50/50 joint venture Interpipe Holdings makes plastic pipes. Owned by private pipe maker and distributor Hynds and Fletcher Concrete and Infrastructure it trades as Waters & Farr.

In its proposal, the joint venture said there was falling demand for concrete pipes and vigorous competition from plastic and other alternative pipe systems. Because of that it was vital concrete pipe be produced by the most efficient means to remain cost competitive.

The move would only involve aggregation in the manufacture and wholesale supply of pipe ranging between 225mm and 450mm, given the joint venture's plastic pipe production within that diameter range. There would not be aggregation at the distribution or merchant level.

Commission chairman Mark Berry said the regulator was satisfied the proposal would not have, or would not be likely to have, the effect of substantially lessening competition in the national market for the manufacture of pipes and pipe systems between 250mm and 450mm.

NZPA

Comments from our readers

No comments yet