Australia-based OneSteel Limited has announced that it has completed its merger with Smorgon Steel.
The total cost of the acquisition of Smorgon's assets is about $1.1 billion. The $700 million acquisition of the company's metal distribution by Australian steelmaker BlueScope Ltd will be kept out of this amount.
Earlier this year, BlueScope agreed to pay $700 million to acquire the metals distribution division of Smorgon Steel Ltd - as part of the consolidation among Australia's three steelmakers.
The new OneSteel shares associated with the Smorgon merger will start to be traded on a normal settlement basis on the Australian Stock Exchange on August 21, 2007.
Commenting on the merger, OneSteel Limited's managing director and CEO, Mr Geoff Plummer, said, "Today effectively marks the completion of the OneSteel and Smorgon Steel merger process and management can now focus on pursuing the opportunities that the combined businesses present".
In addition, OneSteel Limited has also announced that it has acquired 100 percent of Fagersta Group, Australia's fourth-largest stainless steel distributor.
The acquisition of Fagersta, which annually generates sales of around $70 million through the channel of its five sites in Brisbane, Sydney, Melbourne, Shepparton and Adelaide, is expected to be finalized on September 3, 2007.
Fagersta will continue to be run as a separate division with its current brand, sites and management team remaining unchanged.
OneSteel Limited's CEO Geoff Plummer said, "The acquisition of Fagersta is a good strategic fit for OneSteel".