STEEL PRODUCER
Barnes gets nod to acquire struggling steel producer Scaw
The Competition Tribunal has conditionally approved the acquisition by Barnes Southern Palace of unprofitable steel producer Scaw from the Industrial Development Corporation (IDC) for an undisclosed sum. In 2012, the IDC bought a 74% stake in Scaw from Anglo American for R3.4bn. Since then its exposure to Scaw’s debt has multiplied as steel markets in SA have continued to slump. Southern Palace owns former Murray & Roberts infrastructure as well as building businesses in SA and other fabrication assets. The Barnes component of the group makes wire and related products. The IDC retains an undisclosed minority stake in Scaw. To this end, the tribunal’s conditions tackle concerns over the sharing of competitively sensitive information between Barnes Southern Palace and Consolidated Wire Industries (CWI), a producer of mild steel wire and wire products that is jointly owned by ArcelorMittal SA, Scaw and the IDC. "The nominees appointed by the IDC to Scaw’s board shall not have served on...
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