BlueScope Steel will sell some of its assets in Western Australia in order to win regulatory approval of its $23 million purchase of the OneSteel sheet and coil business.
The Australian Competition and Consumer Commission (ACCC) raised concerns that BlueScope's purchase would reduce competition in WA for the distribution of steel sheets and coils.
BlueScope already distributes sheets and coils in Perth, and its purchase of the OneSteel business, owned by Arrium, would remove the only other distributor in that state, the ACCC said.
Consequently, BlueScope has agreed to sell its WA sheet and coil processing assets to a buyer approved by the ACCC, so it can gain approval for its purchase of the OneSteel sheet and coil business.
The competition watchdog said the presence of other sheet and coil distributors in other states meant there were no competition concerns about the BlueScope purchase elsewhere.
