Fletcher Building (ASX:FBU) has cleared a major milestone in its strategic divestment plan, receiving final regulatory approvals for the sale of its construction division to the global infrastructure giant VINCI Construction.
The company confirmed that the New Zealand Overseas Investment Office has granted its consent, while the New Zealand Commerce Commission has declined to pursue further enquiries into the transaction.
The approvals pave the way for the NZ$315.6 million deal, which could rise by an additional NZ$18.5 million depending on the finalisation of specific contract negotiations.
The divestment covers three core New Zealand-based units: Higgins, Brian Perry Civil, and Fletcher Construction Major Projects.
By offloading these assets to VINCI, Fletcher Building aims to pivot towards a more streamlined business model focused on building product manufacturing and distribution.
While the green light from regulators marks a significant breakthrough, the company noted that the final handover remains contingent on internal restructuring and the completion of third-party consents.
Approximately 2,300 employees are expected to transition to VINCI as part of the deal.
Fletcher Building currently anticipates that all remaining conditions will be satisfied in the coming months, with the transaction officially closing by the end of FY26.
At the time of reporting, Fletcher Building’s share price was $2.38.