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

 

Season Ends: Is Whitebaiting Sustainable?

The whitebait fry - considered a delicacy by many - are the juveniles of five species of galaxiid, four of which are considered threatened or declining. The SMC asked freshwater experts for their views on the sustainability of the whitebait fishery and whether we're doing enough to monitor the five species of galaxiid that make up whitebait. More>>

ALSO:

Crown Accounts: Smaller-Than-Expected Four-Month Deficit

The New Zealand government's accounts recorded a smaller-than-forecast deficit in the first four months of the fiscal year on a higher-than-expected inflow of corporate and goods and services tax. More>>

ALSO:

On For Christmas: KiwiRail Ferries Back In Full Operation After Quake

KiwiRail’s Interislander ferries are back in full operation for the first time since the Kaikoura earthquake, with the railspan that allows rail wagons to be loaded on the Aratere now restored. More>>

ALSO:

Comerce Commission Investigation: Prosecutions Over Steel Mesh Labelling

Steel & Tube Holdings, along with two other companies, will be prosecuted by the Commerce Commission following the regulator's investigation into seismic steel mesh, while Fletcher Building's steel division has been given a warning. More>>

ALSO:

Wine: 20% Of Marlborough Storage Tanks Damaged By Quake

An estimated 20 percent of wine storage tanks in the Marlborough region, the country’s largest wine producing area, have been damaged by the impact of the recent Kaikoura earthquake. More>>

ALSO:

ACC: Levy Recommendations For 2017 – 2019 Period

• For car owners, a 13% reduction in the average Motor Vehicle levy • For businesses, a 10% reduction in the average Work levy, and changes to workplace safety incentive products • For employees, due to an increase in claims volumes and costs, a 3% increase in the Earners’ levy. More>>

Women's Affairs: Government Accepts Recommendations On Pay Equity

The Government will update the Equal Pay Act and amend the Employment Relations Act to implement recommendations of the Joint Working Group on Pay Equity. More>>

ALSO:

Get More From Scoop

 
 
 
 
 
 
 
 
Business
Search Scoop  
 
 
Powered by Vodafone
NZ independent news