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Knauf Group is the second largest supplier of plasterboard in the world. The firm had entered the NZ market in 2013 via a 50:50 joint-venture with Boral (USG Boral NZ), opening a distribution centre in Christchurch. In November 2021 Knauf acquired 100% of the firm but announced "despite the best efforts of USG Boral's New Zealand team, we have been unable to build a sustainable business and it is with great sadness that we announce that we will be exiting the New Zealand market" as it "presented several significant challenges to a new market entrant such as us." With the exit of Knauf from the NZ market, Fletcher Construction, through its Winstone subsidiary and GIB products, was left in control of 94% of the market. Although the Commerce Commission investigated the competitive practices of Winstone in 2013 and found no breaches, it is understood that they are currently going to examine the sector again. The board of Knauf is considering re-entering the NZ market if competitive conditions become more favourable. what actions could knauf take which would facilitate the re-entry of Knauf and encourage competition in the sector?
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