Atlas Group may acquire Southward Engineering

Media Release

Issued 6 May 2003-04 / 117

Commerce Commission clears Atlas Group
to acquire Southward Engineering

The Commerce Commission has granted a clearance to Atlas Group Limited to acquire Southward Engineering Co Limited.

Atlas Group is Melbourne-based and is listed on the Australian Stock Exchange. It distributes stainless steel, specialty steel and flat rolled aluminium products to a range of industries in Australasia.

Southward is a privately owned New Zealand based manufacturer and/or distributor of stainless steel and light walled carbon steel tube and automotive exhaust systems, light walled carbon steel, flat rolled aluminium and stainless steel products.

Chair Paula Rebstock said that the Commission was satisfied that the proposed acquisition would not have, nor would be likely to have, the effect of substantially lessening competition in the markets for:

- the national distribution of stainless steel;
-the national distribution of mild steel; and
-the national distribution of aluminium.

“The Commission considers that the presence of a large number of competitors in those markets will provide sufficient constraint on the merged entity and that competition is unlikely to be substantially lessened by the acquisition,” Ms Rebstock said.

A public version of the Commission’s decision is available on the Commission’s website under Adjudication: http://www.comcom.govt.nz/adjudication/s6667.cfm.

ENDS

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