Fletcher Building flicks off Fletcher Construction

Tuesday, 20 January 2026

Christopher Luxon delivered his State of the Nation speech at the International Convention Centre in Auckland yesterday - one of the first events to be held at the long-awaited venue.

Fletcher Building has entered into a binding agreement to sell its construction division to French construction multinational Vinci Construction for at least $315.6 million.

The figure could increase a further $18.5m depending on some contracts the division is currently negotiating.

The full completion and the legal liability for the Auckland’s International Convention Centre - which yesterday hosted Prime Minister Christopher Luxon’s “State of the Nation” speech as its first major event - is excluded from the transaction.

Fletcher Building managing director and chief executive officer Andrew Reding said in the past year it had become clear the company’s future lay in focusing on being a building products manufacturer and distributor, strengthening its balance sheet to ensure returns to shareholders, and the sale was aligned with that strategy.

The transaction will see Fletcher Construction Holdings together with its three New Zealand business units - Higgins, an integrated national civil construction business delivering major infrastructure, road maintenance, regional works and bitumen-based roading products; Brian Perry Civil, a specialist civil, structures and foundations contractor; and Fletcher Construction Major Projects, which delivers large, complex infrastructure projects in partnership with public and private-sector clients, including contracts delivered in conjunction with Higgins and Brian Perry Civil - bundled together.

Fletcher Construction’s South Pacific operations are excluded from the transaction and are being dealt with separately as part of the wider strategic review process.

Following completion of the deal, which is subject to regulatory green lights from the likes of the Overseas Investment Office and possibly the Commerce Commission, Fletcher Construction’s approximately 2300 employees will transfer to Vinci.

More to come