BlueScope has agreed to acquire OneSteel’s sheet and coil processing and distribution businesses in Adelaide, Sydney, Brisbane, and Perth.
BlueScope’s chief executive Mark Vassella said the integration of the Arrium assets will fit well with its current operations.
“As with the pending acquisitions of Orrcon and Fielders from Hills Holdings, these OneSteel businesses are close to BlueScope’s core Australian operations.
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“The acquisitions are a further step towards improving the efficiency with which we can serve Australian customers by lowering costs through the integration of these businesses with our existing operations,” Vassella said.
The acquisition is subject to Australian Competition and Consumer Commission approval.
Completion is targeted for the end of the December 2013 quarter.
BlueScope will pay inventory value at completion (as at 30 September this was $23.1 million) for the assets and assumed liabilities and expects to incur net integration costs of $7 million.
