ACCC not to oppose pipe and tube joint venture between Onesteel and Smorgon

The Australian Competition and Consumer Commission will not intervene in the proposed joint venture between OneSteel Limited and Smorgon Steel Group Limited, ACCC Chairman, Mr Graeme Samuel, said today.

"Market inquiries indicated that the pipe and tube products which the joint venture will produce are currently imported in significant quantities into Australia," he said. "The ACCC took into consideration the significant increase in the volume of imports in recent times and the increasing role they have played in competition in the relevant markets.

"In addition, post-joint venture there will remain an independent domestic producer of pipe and tube products in Orrcon. The ACCC considers that the presence of Orrcon in conjunction with the availability of imported pipe and tube products is likely to act as a strong competitive constraint on the joint venture."

The ACCC also considered the role of anti-dumping applications on competition in pipe and tube markets, as the parties had offered an undertaking relating to this issue.

"The ACCC formed the view that past anti-dumping actions did not appear to have impacted significantly on the ability of imports to compete in the market.  Further, the ACCC did not consider that the proposed joint venture would provide the parties with any increased ability to inhibit imports by means of making anti-dumping applications. As such, the ACCC did not consider it necessary to accept the undertaking offered by OneSteel and Smorgon."

"The ACCC will consider any further arrangements between OneSteel and Smorgon, if and when detailed proposals are put forward by the parties," Mr Samuel said.