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Fletcher Building has agreed to sell its Reinforcing & Wire business to Singapore-owned competitor United Industries for $15.7 million.
In a statement to the NZX on Monday, Fletcher said it would recognise a loss of $20m to $23m on the deal.
Managing director Andrew Reding said the sale was consistent with its strategy to simplify the group.
“Fletcher Reinforcing & Wire is a well-regarded business with strong brands,” he said.
“However, it is not aligned with our targeted return profile, and we did not see a clear path for it to achieve satisfactory levels of contribution within an acceptable timeframe.”
The Reinforcing & Wire unit sells steel mesh products for use in construction.
The transaction is subject to conditions including Commerce Commission clearance.
United Industries New Zealand parent United Steel Merchants reported a loss of $82m for the year to December 2024, from revenue of $187m.
Indian Minister for Commerce and Industry Piyush Goyal and Trade Minister Todd McClay have signed the India New Zealand Free Trade Agreement in New Delhi. McClay said the FTA supported New Zealand’s goal of doubling the value of exports in 10 years. “This deal will deliver thousands of jobs and billions of dollars in additional exports,” McClay said. He said the signing ensured New Zealand could benefit from a Most Favoured Nation clause whereby the better access the European Union has secured for its wine and services would be extended to New Zealand exporters, if the agreement came into force first. Two-way trade between India and New Zealand is currently worth $3.95 billion, but McClay has pointed to growth in trade with China as example of what could happen once the India FTA comes into effect. The agreement eliminates or reduces tariffs on 95% of New Zealand’s exports to India. New Zealand First opposes the deal, but the Labour Party came out in support of the FTA last week.