Fletcher Steel Cleared To Acquire Steel And Tube

Issued 21 March 2001/29

Commission Clears Fletcher Steel To Acquire Steel And Tube

The Commerce Commission today cleared Fletcher Steel Limited to acquire all the shares in Steel and Tube Holdings Limited.

Commission Chair John Belgrave 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.

Mr Belgrave said that much of the information in the Commission's previous decision was applicable to the present application. However, as some time had passed since that decision, the Commission conducted market enquires to verify and update information.

The Commission analysed competition in those markets and found some changes had occurred, including some of the smaller competitors expanding their operations, but found that these changes would not alter its previous decision to give a clearance.

The Commission concluded that, should the proposal go ahead, Fletcher Steel would not acquire or strengthen dominance in any of the national markets for the:

* distribution of merchant steel products
* distribution and fabrication of reinforcing steel
* distribution and processing of steel plate products
* distribution and processing of steel coil products
* manufacture and distribution of domestic roofing products, and
* manufacture and distribution of industrial roofing products.

Copies of the Commission's decisions, numbers 378 and 421, are available from its website, www.comcom.govt.nz, in the adjudication folder and in hard copy from reception, level 7 Landcorp House, 101 Lambton Quay, Wellington.

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