BlueScope Steel cleared to buy Pacific Steel assets
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: http://www.comcom.govt.nz/business-competition/mergers-and-acquisitions/clearances/clearances-register/