AMSA acquires SA’s only producer of heavy sections of long steel
The Tribunal has unconditionally approved a large merger whereby ArcelorMittal South Africa Ltd (AMSA) is acquiring the manufacturing and production of structural steel and rail business of Highveld Structural Mill (Pty) Ltd (HSM), a subsidiary of Evraz Highveld Steel & Vanadium Ltd (Highveld).
HSM is the only company capable of producing “heavy sections of long steel” in South Africa. It operates from its eMalahleni plant in Mpumalanga.
HSM went into business rescue in April 2015 and ceased production due to weakened global markets and reduced domestic steel demand, among other factors. In 2017, HSM restarted limited production of the heavy sections.
The Commission’s investigation found that there would be no anti-competitive effects arising from the merger. It recommended that the merger should be approved and that it would potentially benefit the public interest.