The Commerce Commission has received a clearance application in relation to a proposed acquisition by Fletcher Distribution Limited (FDL) to acquire the six ITM stores, and a frame and truss manufacturing plant from Tumu Merchants Limited (Tumu). The ITM stores are located in Gisborne, Napier, Hastings, Havelock North, Dannevirke and Masterton and the manufacturing plant is located in Hastings.
FDL and Tumu ITM both supply building materials and related goods and services to trade and retail customers.
FDL is a wholly owned subsidiary of Fletcher Building Limited. It owns the PlaceMakers network of hardware stores, which sell building products and related goods and services throughout New Zealand. FDL also operates frame and truss manufacturing plants across New Zealand. Relevant to the proposed acquisition, PlaceMakers has stores in the Hawke's Bay, Wairarapa and Manawatu-Whanganui regions and operates a frame and truss manufacturing plant in Taupo.
Tumu majority owns and operates the six ITMs, and the frame truss plant, through the following subsidiaries that will be acquired by FDL: Tumu Gisborne Limited, Tumu Napier Limited, Tumu Hastings Limited, Tumu Havelock North Limited, Tumu Dannevirke Limited, Tumu Masterton Limited and Tumu Frame & Truss Limited.
A public version of the clearance application will be available shortly on the Commission's case register.
Background
We will give clearance to a proposed merger if we are satisfied that the merger is unlikely to have the effect of substantially lessening competition in a market.
