Video | Agriculture | Confidence | Economy | Energy | Employment | Finance | Media | Property | RBNZ | Science | SOEs | Tax | Technology | Telecoms | Tourism | Transport | Search

 


BlueScope Steel to buy production assets of Pacific Steel

BlueScope Steel cleared to buy steel production assets of Pacific Steel

16 April 2014

The Commerce Commission has granted clearance to BlueScope Steel (NZ) Limited 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 Limited.

BlueScope manufactures and distributes flat 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 that 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, flat 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 and the import price strongly influences the prices that BlueScope and Pacific Steel are able to charge. Post-merger, imports will continue to provide pricing pressure on the merged business.”

A public version of the written reasons for the decision will be available shortly on the Commission’s website: www.comcom.govt.nz/business-competition/mergers-and-acquisitions/clearances/clearances-register/

Background
BlueScope Steel (NZ) Limited is a wholly owned subsidiary of BlueScope Steel Limited, an ASX listed company. BlueScope Steel Limited’s New Zealand operations include steel production and iron sand mining. It produces a range of steel products including slab, hot and cold rolled coil, welded steel beams, pipes and hollow sections.

Pacific Steel Group is a business unit of Fletcher Steel Limited, a wholly owned subsidiary of Fletcher Building Limited. In New Zealand, Pacific Steel Group is comprised of three businesses: Pacific Steel; Pacific Wire; and Fletcher Pacific Fiji. Pacific Steel Group also produces a range of steel products including billet, reinforcing bar and coil, wire, rod bar and rod coil.

ENDS

© Scoop Media

 
 
 
 
 
Business Headlines | Sci-Tech Headlines

 

ICT Innovation: Six NZ Finalists In World Summit Awards

The awards are a global showcase of 40 projects, across eight categories, with a special emphasis on those which show the benefits of information and communication technology for the development of communities. New Zealand has finalists in six of the eight categories. More>>

ALSO:

Final Frontier: Rocket Lab And NASA Sign Commercial Space Launch Agreement

Rocket Lab has signed a Commercial Space Launch Act Agreement with the National Aeronautics and Space Administration (NASA). The agreement enables Rocket Lab to use NASA resources - including personnel, facilities and equipment - for launch and reentry efforts. More>>

ALSO:

Scoop Business: Wheeler Downplays Scope For ‘Large’ Rates Fall

Reserve Bank governor Graeme Wheeler says some market commentators are predicting further declines in interest rates that would only make sense for an economy in recession, although some easing is likely to be needed to maintain New Zealand’s economic growth. More>>

ALSO:

Ruataniwha Dam: Consent Conditions Could Mean Reduced Intensity

Legal advice sought by the Hawke’s Bay Regional Council on the Ruataniwha Dam consent conditions has confirmed that farmers who sign up to take water from the dam could be required to reduce the intensity of their farming operation to meet the catchment’s strict nitrogen limit. More>>

Health And Safety: Bill Now Sees Rules Relaxed For Small Businesses

Health and safety law reform sparked by the Pike River coalmine disaster has been reported back from the industrial relations select committee with weakened requirements on small businesses to appoint health and safety representatives and committees. More>>

ALSO:

Bearing Fruit: Annual Fruit Exports Hit $2 Billion For First Time

The value of fruit exported rose 20 percent (up $330 million) for the June 2015 year when compared with the year ended June 2014. Both higher prices and a greater quantity of exports (up 9.0 percent) contributed to the overall rise. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news