Commerce Commission has this month issued approval for Fletcher Building’s acquisition of Higgins Group. It was the Commission’s view that the merger would not substantially reduce competition in regions where the two rival firms operate.
The approval covers Higgins’ road surfacing and road maintenance, civil structure and construction products, including most of its aggregates and bitumen businesses. Higgins has not sold its ready-mix concrete business or property businesses. These will be transferred to Higgin’s existing shareholders before the acquisition. The Horokiwi Quarries was also excluded from the acquisition. It was the Commission’s view that the inclusion could reduce competition in the supply of aggregates in north Waikato, Napier, Manawatu-Whanganui, Kapiti and Christchurch.
Fletcher Building has been looking to secure and boost its local supplies of resources for the Christchurch rebuild and its other infrastructure projects.