On 17 December 2010, the ACCC accepted an undertaking (the Undertaking) from OneSteel Limited (OneSteel) in relation to the proposed acquisition of Moly-Cop S.a.r.l., including a 40% shareholding in Donhad Pty Ltd (Donhad)(the Proposed Acquisition). Donhad is an Australian manufacturer and distributor of grinding media to the mining industry.
In the absence of the Undertaking, the Proposed Acquisition would give OneSteel a 40% interest in its closest competitor in the supply of grinding media in Australia. The ACCC was concerned, among other things, that the Proposed Acquisition would diminish OneSteel's incentive to compete for grinding media customers with Donhad.
The objective of the Undertaking is to address these competition concerns by requiring OneSteel to divest its shareholding in Donhad and hold its interest in Donhad separate from OneSteel's other assets and businesses in accordance with the Undertaking.
