Commerce Commission Winstone Wallboards Investigation

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand

Commerce Commission Advises Outcome of Winstone Wallboards’
Investigation
Auckland, 23 August 2024: Fletcher Building Limited (FBU) advises that it has received
notification from the Commerce Commission of the outcome of its investigation in
relation to the historical use of volume rebates by Winstone Wallboards. The
Commission has advised that it considers that Winstone Wallboards’ use of the volume
rebates (which were discontinued by the company in 2022) breached the Commerce
Act. The Commission intends to file legal proceedings against Winstone Wallboards,
seeking declarations that Winstone Wallboards contravened the Commerce Act and
civil pecuniary penalties.

We disagree with the Commission’s conclusion, given that, during the recent Building
Products Market Study, merchants told the Commission that the rebate structures were
not a factor that inhibited competition. As we submitted during that process, these
rebates are common within the building products industry and are simply one aspect of
competing. The Commission itself acknowledged that volume rebates were
widespread.

In addition, the Commission comprehensively investigated Winstone Wallboards on this
topic in 2014, concluding that Winstone Wallboards’ market share was driven by its
attractive overall product and service offering, not the rebates, and that the evidence did
not support a conclusion the rebates breached the Commerce Act.

As the Commission concluded in 2014, we are confident, regardless of the presence of
rebates, that our customers choose Winstone Wallboards’ products because of their
quality and range, along with the service we provide.

The Commission has indicated that it anticipates filing formal proceedings by the end
of October 2024. Winstone Wallboards intends to defend the proceedings vigorously,
noting that legal action could take some time.

ENDS

Authorised by:
Haydn Wong
Company Secretary

For further information please contact:

Fletcher Building Limited, Private Bag 92114, Auckland 1142, 810 Great South Road, Penrose, Auckland 1061, New Zealand

MEDIA
Christian May
General Manager – Corporate Affairs
+64 21 305 398
Christian.May@fbu.com
INVESTORS AND ANALYSTS
Aleida White
Head of Investor Relations
+64 21 155 8837
Aleida.White@fbu.com