Fletcher Steel applies again for Steel & Tube
Issued 16 February 2001/15
Fletcher Steel applies again for clearance to acquire Steel and Tube
The Commerce Commission has received an application from Fletcher Steel Limited for clearance to acquire all the shares in Steel and Tube Holdings Limited.
The Commission's Commerce Act Manager, Geoff Thorn, said that the Commission had cleared a previous application from Fletcher Steel in December 1999 but the acquisition did not go ahead and that clearance has expired. A business acquisition must occur within one year of the Commission's decision or the clearance expires.
Fletcher Steel is part of the Fletcher Challenge group of companies. The majority shareholder in Steel and Tube is Australian company OneSteel.
Mr Thorn said that the Commission must determine what markets are relevant to the proposal, and then assess what impact the proposal would have on competition in those markets.
The Act prohibits business acquisitions that result in dominance being acquired or strengthened in any market. The Commission will give a clearance if it is satisfied that dominance would not be acquired or strengthened.
The Commission has 10 working days in which to make its decision but the Act allows for extensions of time if necessary. Working day 10 will be February 28.
Public copies of Fletcher Steel's application are available from the Commission in hard and electronic copies. The Commission's December 1999 decision, Decision 378, is available from the Commission's website, www.comcom.govt.nz, in the adjudication folder. It can be downloaded directly via http://www.comcom.govt.nz/publications/GetFile.CFM/378.pdf?Doc_ID=221&Filename=378.pdf, and is also available in hard copy. Hard copies are at reception, level 7 Landcorp House, 101 Lambton Quay, Wellington.