OneSteel to merge with Smorgan Steel

OneSteel to merge with Smorgan Steel

Arcelor and Mittal Steel aren’t the only steel companies making news this week. Australia’s largest steel maker, OneSteel announced its own 1.58 billion Australian dollar merger with rival Smorgan Steel Ltd. on Monday.

OneSteel Chairman Peter Smedley said in a statement that the deal would help them face the rising challenge from China and other international steel producers.

He said: “The transaction represents the next step in the restructuring of the Australian steel industry. It will further consolidate the sector, leading to a lower cost and more efficient steel industry from which to effectively compete in the world steel market for years to come.”

OneSteel added that they expect the merger to be complete by October this year and it would require approval from the Australian regulatory authorities.