Australian listed retailer Metcash has shown its “strongest indication yet” that it will take a look at plumbing supplies business Tradelink, according to a report in the Australian Business Review.

ABR reported that Metcash, at its investor day this week, said it saw significant growth opportunities in hardware with complementary businesses and adjacent markets, and that it was focused on strategic growth opportunities for Mitre 10 and Total Tools.

Although there was no mention of Metcash buying Tradelink, the report suggested that the plumbing supplies business “ticks a lot of boxes” for the company.

The report said that industry groups Reece and GWA have already passed on the Tradelink opportunity after their level of interest had been investigated.

Metcash operates a grocery wholesale distribution business and owns interests in IGA supermarkets. In February it purchased food distribution company Superior Food Services from Quadrant Private Equity for $390m.

Tradelink, owned by Fletcher Building, is valued at around $NZ150m, and according to the report, which cites certain sources in the market, could possibly sell for quite a lot more.

Tradelink is on the market through Miles Advisory.