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Australia’s largest brick company, Brickworks, is seeking to force the billionaire Buckeridge family’s construction and building materials empire, BGC Australia, to divest a subsidiary over competition concerns.
ASX-listed Brickworks launched legal action against the Perth-headquartered BGC Australia in the Federal Court last year, alleging the private business breached market concentration rules through its acquisition of Midland Brick.
A court battle has broken out between two billionaire families over the lucrative brick market. Credit:
Brickworks alleges that BGC breached the Competition and Consumer Act by selling bricks at below-market value after its acquisition of Midland Brick in 2020.
BGC – the Buckeridge Group of Companies – is vigorously defending the claim. It believes its acquisition of Midland did not adversely affect competition and denies the allegations that it deliberately sold bricks below market value to stymie competition.
Brickworks – which is majority owned by entities associated with Sydney-based billionaire Robert Millner, including investment house Washington H Soul Pattinson – declined to comment.
Len Buckeridge built BGC into a major property developer. He died in 2014.Credit: John Mokrzycki
The battle of the brick billionaires is not expected to shake up Australia’s brickmaking industry, but it reveals the ongoing tension between the two groups and provides an insight into the competitiveness of the sector that has been buffeted by housing supply downturns and increasing costs.
Brickworks has more than 40 per cent of the brickmaking market, while construction giant BGC’s brick business, Midland (which also incorporates the former Brikmakers brand), is smaller overall but holds a large share of the West Australian market. BGC is a major property developer and construction group in WA that was founded by Len Buckeridge, who died in 2014. His family has been moving towards a sale of its building materials business over the past few years after the group was buffeted by the slowdown in the WA construction market.
It emerged at a court hearing on Friday that Brickworks is also seeking orders to force BGC to divest Midland Brick as part of its case against its rival brick seller.
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