Finance
New Zealand's Fletcher Building to sell construction arm to French builder
Published by Global Banking & Finance Review®
Posted on January 19, 2026
2 min readLast updated: January 19, 2026
Global Banking & Finance Review®
Company
Published by Global Banking & Finance Review®
Posted on January 19, 2026
2 min readLast updated: January 19, 2026
Fletcher Building is selling its construction division to VINCI for NZ$315.6M, aiming to address economic challenges and streamline operations.
Jan 20 (Reuters) - New Zealand's Fletcher Building said on Tuesday it will sell its construction division to a unit of French infrastructure firm VINCI SA for NZ$315.6 million ($182.76 million).
The construction arm is one of Fletcher's industry segments that caters to building and maintenance services in infrastructure projects across New Zealand and the South Pacific.
The divestment comes after the construction materials maker's 2025 earnings were hit due to lower demand in its materials and distribution division, which sells construction and plumbing as well as cement and concrete products.
In its 2025 annual report, the firm also flagged challenging economic conditions across New Zealand and Australia, including subdued construction activity, which had dented its full-year bottom line.
The construction arm has created some major issues for the broader group, and was once at the centre of a lawsuit by casino company SkyCity Entertainment over delays in completing the construction of the International Convention Centre in Auckland.
The deal, still awaiting regulatory greenlight, is expected to go through before the end of calendar year 2026.
Fletcher added that the final enterprise value of the deal could rise to NZ$334.1 million, subject to a few contracts for the division that were currently under negotiation.
The divestment of Fletcher Construction Holdings to VINCI Construction comprises three local business units, Fletcher added in its statement.
($1 = 1.7268 New Zealand dollars)
(Reporting by Shruti Agarwal in Bengaluru; Editing by Nia Williams and Andrea Ricci)
Divestment is the process of selling off a subsidiary or business segment. Companies often divest to focus on core operations, improve financial performance, or respond to market conditions.
A construction division refers to a segment of a company that specializes in building and infrastructure projects, including residential, commercial, and public works.
Enterprise value is a measure of a company's total value, often used as a comprehensive alternative to market capitalization. It includes equity, debt, and cash reserves.
The construction industry encompasses all activities related to the building of infrastructure, including residential, commercial, and industrial projects.
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