UPDATE 1-NZ's Fletcher Building to buy Australia's Fielders

(Adds background, company comment)

WELLINGTON, Oct 7 (Reuters) - Fletcher Building Ltd (FBU.NZ: Quote, Profile, Research, Stock Buzz), New Zealand's largest building products and construction company, said on Tuesday it would buy steel products company Fielders Australia Pty Ltd.

No purchase price was given, but Fletcher said Fielders had annual sales of A$275 million ($199 million).

"Fielders is a well run business that has a solid reputation for performance with its customers," Fletcher Building chief executive Jonathan Ling said in a statement.

Fielders is 60 percent owned by Hills Industries Ltd (HIL.AX: Quote, Profile, Research, Stock Buzz), and 40 percent owned by FST Investments Ltd.

Shares in Fletcher Building, New Zealand's third-biggest stock by capitalisation, last traded down 15 cents or 2.3 percent at NZ$6.35 in a broader market down 2.7 percent.

So far this year the stock has fallen 44 percent against a near 27 percent fall for the benchmark NZX-50 index .NZ50.

Fielders provides steel building components to Australia's commercial, industrial and residential construction industries.

The deal is conditional on regulator approval, due diligence and approval from Fletcher Building's board of directors.

Fletcher Building, which makes everything from boards for building and laminates for kitchens to concrete and steel for construction, has spent more than NZ$3 billion ($1.9 billion) on acquisitions in the past few years, including a US$700 million deal to buy Formica Corp, making it the world's largest laminates maker.

It dominates the New Zealand market and competes in Australia with companies such as CSR Ltd (CSR.AX: Quote, Profile, Research, Stock Buzz) and Rinker. ($1=NZ$1.59, A$1.38) (Reporting by Adrian Bathgate)