Item 6.4 in Project Plan. Smorgon Steel origin / connection.
Talk of a Smorgon steel / Onesteel Merger in August 2006 was countered by Bluescope buying in 19.9% of Smorgon Steel to "ensure that the OneSteel/Smorgon Steel merger proposal does not proceed in its current form".
http://www.bluescopesteel.com/go/news/bluescope-steel-acquires-stake-in-smorgon-steel
Accessed 7/9/09
The Australian Competition and Consumer Commission ("ACCC") reveiwed proposals for Merger between the three businesses (Bluescope, Smorgon and OneSteel and approval was given 7th June 2007
http://www.bluescopesteel.com/go/news/smorgon-steel-/-onesteel-/-bluescope-steel-transactions-cleared-by-accc
Accessed 7/09/09
BlueScope Steel today announced it has acquired Smorgon Steel's metal distribution business (Smorgon Steel Distribution) .
As part of the transaction, BlueScope Steel has sold its 19.9% stake in Smorgon Steel to OneSteel
http://www.bluescopesteel.com/go/news/introducing-bluescope-distribution
Accessed 7/9/09
Sorry only got half way through my post and stupidly published.
ReplyDeleteFrom Onesteel's perspective, the Steelmaking arm of Smorgon merged with Onesteel.
" In August 2007, OneSteel and Smorgon Steel, two great names in Australian steelmaking, became a single entity. The merged business has a unique range of products, services and capabilities and our transformation into a stronger, more diversified and sustainable business means we are able to take advantage of opportunities and compete in a rapidly changing global environment"
http://www.onesteel.com/profile.asp
Accessed 7/9/09.
Seemingly, The blocking by Bluescope and subsequent distribution business transaction with the sale of controlling shares as part of the deal strategically was to maintain a level of control over future competitive environmental conditions.
As Dave's financial analysis is elluding to, the Onesteel - Smorgon merger seems to generate greater Gross Margins than Bluescope.
On the other hand, the organizations seem less alike the more their structures are interrigated.
Bluescope coated/ Industrial products are a major contributor for Bluescope's market share.
Onesteel on the other hand seem to have their hands in many pies and seemingly able to spread risk whilst exploiting efficencies between business units.
Hi Warwick - just wanted to let you know I have connected to your blog successfully
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