Robor’s acquisition of Macsteel tube and pipe business gets nod in embattled sector
The companies are conducting due diligence on each other as the merger of their tube and pipe business nears finality after nod from the Competition Tribunal
The Competition Tribunal has approved with conditions steel tube and pipe manufacturer Robor’s acquisition of Macsteel’s tube and pipe business. The transaction, which entails the merger of two of the country’s big steel tube and pipe manufacturers, will result in consolidation in the local industry which is battling overcapacity and heightened competition. The tribunal’s decision follows the Competition Commission’s recommendation for the approval of the transaction, which it said was unlikely to result in a substantial lessening of competition. Macsteel CEO Mike Benfield said on Friday that the two companies were conducting a quick due diligence on each other “to ensure that the joint venture that will materialise will be sustainable”. Benfield said the due diligence could be completed within three weeks. “It will move quickly,” he said. The merger, which could be finalised by the end of February, was likely to result in the retrenchment of about 311 employees. “People’s lives are...
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