Commerce Commission grants clearance to Fletcher Building to acquire Stevenson masonry assets in Auckland and Whangarei
13 February 2009
The Commerce Commission has today given clearance to Fletcher Building Limited to acquire up to 100 per cent of the assets of both Stevenson Group Limited's Whangarei masonry business and Stevenson's Auckland masonry business.
Commerce Commission Chair Paula Rebstock said that the Commission is satisfied that the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in the Northland and Auckland markets for the manufacture and wholesale supply of concrete masonry products.
Stevenson had submitted that, unless the proposed acquisition proceeded, the only alternative was the closure of its Auckland and Northland masonry businesses and Stevenson's exit from the relevant markets.
In assessing whether the proposed acquisition was likely to substantially lessen competition, the Commission considered whether, if the proposed acquisition did not proceed, there was a real prospect of a third party acquiring the business as a going concern, or acquiring the assets on closure of the business and using them to compete in the relevant markets (in both cases, at a price exceeding Stevenson's closure value).
Ms Rebstock said, "The Commission was satisfied that there was no real prospect of either of these scenarios occurring."
The Commission noted the markets for masonry products are in decline and that Stevenson had been running at a significant loss.