BlueS­cope Steel to ac­quire Pa­cific Steel’s mills

DEMM Engineering & Manufacturing - - NEWS -

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.”

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