South Africa’s Competition Tribunal has recently approved the acquisition of Highveld Structural Mill (HSM) by ArcelorMittal South Africa (AMSA). HSM is a former subsidiary of Evraz Highveld Steel & Vanadium. The authority stated, “There would be no anti-competitive effects arising from the merger - rather, it would potentially benefit the public interest.”
Although AMSA announced its plans to buy HSM in August last year, the negotiation process between the companies had been continuing for several years. In 2015, Evraz Highveld Steel & Vanadium, along with HSM, underwent a business rescue and ceased production due to unfavourable business conditions in the global steel market and subdued domestic demand. However, in 2016 the sides signed a two-year manufacturing agreement, in terms of which AMSA had to supply blooms and slabs to HSM for processing in order to manufacture heavy structural steel, which made the resumption of production operations by HSM possible, SteelOrbis understands.