The ACCC has raised concerns over BlueScope Steel’s Limited
(ASX:BSL) proposed acquisition of Arrium’s Limited
(ASX:ARI) OneSteel Sheet and Coil business.
In a statement, the competition watchdog said the proposed takeover raised significant competition issues for Western Australia's sheet and coil distribution sector.
ACCC chairman Rod Sims says market inquiries have identified strong concerns that the proposed acquisition would remove OneSteel Sheet and Coil as an effective competitor.
The watchdog says it’s not convinced that imports of sheet and coil products were a viable alternative for most of BlueScope and OneSteel's Western Australian customers.
The ACCC is inviting further submissions by January 24, 2014, with a proposed final decision to be made on February 20, 2014.
BlueScope Steel booked a net loss of $62.6 million in fiscal 2013.
