Tradelink remains in limbo
The Australian Financial Review quoted the CEO of Fletcher Building, who said that their 260-branch Tradelink plumbing supplies business was unlikely to be put up for sale. The AFR commented that Tradelink competes against Reece, forgetting to mention that Tradelink used to be much larger than Reece and has progressively shrunk to about half of Reece’s size. A comment that Tradelink ‘fails to compete’ against Reece would have been more precise. We don’t see Tradelink having much chance to arrest the decline.