The Australian Competition and Consumer Commission has announced this morning that it will allow BlueScope’s purchase of Arrium’s OneSteel sheet and coil assets.
There were competition
concerns about sheet and coil distribution in WA, as OneSteel was BlueScope’s
main competition for sheet and coil products.
“Market inquiries have identified strong concerns that the proposed acquisition would remove OneSteel Sheet and Coil as an effective competitor and the main alternative to BlueScope in Western Australia, particularly for customers that require processed sheet and coil products," said the commission’s chairman Rod Sims in December last year.
ACCC is satisfied the divestiture conditions will allow for adequate
competition in WA, it announced this morning.
”The divestiture of BlueScope’s sheet and coil processing assets to Selection Steel should enable Selection Steel to expand its operations in Western Australia and compete with BlueScope, particularly in the processing of sheet and coil products,” said Sims in a statement.