Fletcher Building is seeking to buy six North Island Tumu building products stores – but the Commerce Commission is taking a hard look at the deal, which also includes a frame and truss-making factory in Hastings.
The six stores, that were previously trading under ITM branding, are located in Gisborne, Napier, Hastings, Havelock North, Dannevirke and Masterton.
The Commerce Commission last week published a statement of issues relating to the clearance application by Fletcher Building’s subsidiary Fletcher Distribution, outlining potential competition issues following a preliminary investigation. While stressing that the statement should not be interpreted by either party as indicative of clearance or otherwise, the commission said it was seeking responses from Fletcher, Tumu and other interested parties.
The statement of issues will be available on the case register on the commission’s website shortly with submissions due by June 30.
The Tumu Building Materials stores date back to 1982 and are described by the company as selling quality materials to tradesmen and “serious DIYers”. They are part of the Tumu Group, which also includes Kiwi Lumber, Timber Span, Perma Pine and investment company Killarney Capital.
The commission says it will release a final decision on July 28.