BlueScope Steel to acquire Pacific Steel’s mills
The Commerce Commission has granted clearance to BlueScope Steel (NZ) to acquire Pacific Steel Group's rolling mill and wire mill manufacturing operations in Auckland, and its New Zealand long steel distribution, marketing and sales operations from Fletcher Steel.
BlueScope manufactures and distributes f lat steel products such as steel slab and sheeting. Pacific Steel manufactures and distributes long steel products such as billet, reinforcing bar and wire.
BlueScope will be the only manufacturer of these products in New Zealand as a result of the acquisition.
However, the Commission is satisfied the proposed acquisition will not have, or would not be likely to have, the effect of substantially lessening competition in separate markets for the supply of steel slab, steel billet, f lat steel products and long steel products.
“The Commission found that the products manufactured by BlueScope and Pacific Steel did not overlap and did not exert any competitive pressure on each other,” said Commerce Commission chairman Dr Mark Berry.
“Further, the Commission found that the products supplied by BlueScope and Pacific Steel can be sourced through imports. Post-merger, imports will continue to provide pricing pressure on the merged business.”