South African steel mills consider consolidation
A possible consolidation between South Africa's two major steel producers Iscor Limited and Highveld Steel and Vanadium Corporation is being discussed in the industry lately. The company officials state that such consolidation will progress throughout the next three years. Such consolidation is seen as the efficient way to achieve cost effectively aggressive and strong steel industry in the Republic of South Africa. These two major companies together hold almost 90% of the South African steel market. It is believed Iscor might intend to take over Highveld in the coming two or three years. Meanwhile, it is widely commented that at the point where steel prices start falling, expectedly in the middle of 2003, a merger or consolidation is very likely. Obviously, in case of such a merger, a monopoly would be created in South Africa considering the market share of the two companies together, and in case Iscor seriously considers such transaction, it has to convince the competition authorities that benefits of such a merger will be worth it.