South Africa's Competition Commission has announced that it has approved, with conditions, the merger between Chinese steel producer Hebei Iron and Steel Group Co. Ltd (Hebei Steel) and Duferco International Trading Holding SA (Luxembourg) (Duferco).
Through the proposed merger, Hebei Steel will acquire a majority shareholding in Duferco. The activities of Duferco in South Africa are undertaken by Duferco Steel Processing (Pty) Ltd (DSP) and Duferco Distribution Services (Pty) Ltd (DDS). The merger will allow Hebei Steel to market and sell its products beyond China, using the distribution network of DDS.
The commission's conditions for the approval of the merger is that the merger should not affect the employees of Duferco's South African operations and that Hebei Steel will not change its plans to develop a steel plant in South Africa following the merger.