Fletcher Building seeks NZ clearance to buy Crane Group

Fletcher Building.

Fletcher Building Ltd., undeterred by Crane Group's rejection of it's A$740 million takeover bid, has sought New Zealand antitrust clearance to acquire the business.

Crane's board rejected the proposal this week as inadequate.

Its shares climbed to A$9.38 on the ASX yesterday, exceeding the A$9.35 a share price Fletcher has offered, made up of one of its shares and A$3.43 cash for each Crane share.

Fletcher and Crane both manufacture and supply building materials in Australia and New Zealand.

Fletcher's application to the Commerce Commission mainly relates to pipes and pipe fittings, along with distribution of electrical products, plumbing, bathroom/laundry products and safety equipment, the regulator said in a statement

Shares of Fletcher traded at $7.79 yesterday and have declined 3 per cent this year. Crane shares were as low as A$7.14 last month, before the offer sent them soaring.