Waters & Farr applies for clearance to acquire Fletcher Concrete's VT concrete pipe plant

The Commerce Commission has received an application from Interpipe Holdings Limited (trading as Waters & Farr) seeking clearance to acquire Fletcher Concrete and Infrastructure Limited’s vertical drycast technology (VT) concrete pipe plant at Ruffell Road, Hamilton.

Waters & Farr is a joint venture company owned 50/50 by Fletcher Concrete and Hynds Limited, which manufactures polypropylene pipes and polyethylene pipes.

Fletcher Concrete and Hynds also independently manufacture and distribute a range of concrete pipes and other pipeline products.

The clearance application relates to the parties’ involvement in the manufacture and supply of concrete and plastic pipes and pipe fittings.

In considering the application, the Commission’s role is to determine whether the acquisition has the effect of substantially lessening competition in a market.

A public version of the application will be available shortly on the Commission’s website at www.comcom.govt.nz/clearances-register

Background

Concrete pipe can either be manufactured by using spun technology or vertical drycast technology (VT).
Among other benefits, VT produces pipe more efficiently and is suitable for long-run production as opposed to spun. From an end-user’s view there is no distinction between spun and VT manufactured pipe as they perform the same function.

Fletchers (via its Humes manufacturing division) manufacture both spun and VT concrete pipe.