The Australian Competition and Consumer Commission (ACCC) has announced that it will give approval for the Australian flat steel producer BlueScope Steel Limited's proposed acquisition of the OneSteel Sheet and Coil business from Arrium Limited on the condition that BlueScope sells its sheet and coil processing assets in Western Australia.
BlueScope has agreed to sell its sheet and coil processing assets in Western Australia to an ACCC-approved purchaser. The ACCC clearance includes approval of Selection Steel as the purchaser of the divestiture business.
"In the Western Australian market the proposed acquisition would remove BlueScope's main competitor and the only other alternative distributor with significant processing capability. The ACCC was concerned that, because of this, the proposed acquisition could have led to higher prices, less favorable terms of supply and a reduced range of products in sheet and coil distribution in Western Australia in the absence of the proposed divestiture," ACCC chairman Rod Sims said.
Selection Steel is a sheet and coil distributor headquartered in Melbourne with a presence in all states of Australia. Its operations in Western Australia consist of a stocking centre where it distributes limited volumes of sheet and coil products.
As SteelOrbis previously reported, in October 2013, BlueScope announced that it will acquire OneSteel sheet and coil processing and distribution businesses in Sydney, Brisbane, Adelaide and Perth, anticipating net integration costs of $7 million.