The announcement was a long time coming but Fletcher Building has made a request to buy Higgins Group Holdings for $315 million, including 50 percent of shares in the Horokiwi Quarries. The offer includes the contractor’s roading construction and maintenance operations; asphalt and bitumen plants here and in Fiji; and 16 quarries. Not included are Higgins’ ready-mix concrete and property businesses.
Meanwhile, Fletcher has sold Rocla Quarry Products to Hanson Construction for a post-tax profit of $85 million. Higgins is an obvious choice, says Fletcher Building chief executive officer Mark Adamson, as Fletcher has partnered with the contractor on roading projects for the past 25 years.
The Higgins offer is now in the hands of the Commerce Commission, which published a statement of preliminary issues relating to the application that outlined key competition issues that the Commission currently considers will be important in deciding whether or not to grant clearance.
Public submissions over the proposed buy-out closed on March 14. The Commission says it will announce its decision early May.
Fletcher Building is now made up of five divisions: building products; international; distribution; residential and land development; and construction, which includes Higgins contracting businesses in New Zealand and Fiji. Graham Darlow continues as chief executive of the construction division.