BlueScope has been cleared for a competitor's purchase

BlueScope Steel has been approved for the purchase of one of its competitors in the building products market. The Australian Competition and Consumer Protection Commission (CCPC) has decided not to oppose BlueScope's desire to acquire other Australian businesses that compete in the construction market.

BlueScope is the only domestic manufacturer of various types of steel coils, which are the backbone of the construction product manufacturing process. NCC Chairman Rod Sims said: "The NCC has concluded that an acquisition is unlikely to significantly reduce competition in any relevant market."

The BlueScope subsidiary in Lisakht competes with other players in the production and supply of rolls that are used in all types of building structures.

BlueScope in August 2013 entered into a deal to acquire other Hills' metal products enterprises, Orrcon, for $ 87.5 million. The purchase of Orrcon has already been completed. SKPC believes that BlueScope's power in the steel construction products market will not be strengthened through acquisitions by field players, as customers still have the option of choosing other suppliers and alternative materials.

Rod Sims said that SCPC believes that while the acquisition represents a merger of two major suppliers, "there is a need to operate the blast furnaces at Port Kembla smelters at full capacity to generate greater profits in the domestic market and increase exports of finished goods."