BlueScope Steel, a renowned flat product steel manufacturer, has announced that it has completed the acquisition of the downstream long-products rolling and marketing operations of Fletcher Building’s Pacific Steel Group.
According to the article on The New Zealand Herald, the deal is valued at $120 million and will lead to the closure of Fletcher’s steel mill at Otahuhu at the end of 2015.
Melbourne-based BlueScope has paid $60 million for Pacific Steel’s long-products rolling and marketing operations and additional $60 million for the target’s working capital, in accordance with the terms entered into and announced on 17 February 2014.
Pacific Steel Group is New Zealand’s only manufacturer of wire rod, reinforcing bar and coil products. Each year the company converts around 300,000 tonnes of scrap metal, including old car bodies, into quality steel products.