21 Feb Competitions Tribunal approves IDC sale of Scaw
The Competition Tribunal has conditionally approved the acquisition by Barnes Southern Palace of steel producer Scaw from the Industrial Development Corporation (IDC).
As part of the sale agreement, the IDC will return an undisclosed minority stake in Scaw. Southern Palace owns former Murray & Roberts infrastructure division in South Africa as well as other fabrication assets. The Barnes component of the group makes wire and related products.
In 2012, the IDC bought a 74% stake in Scaw from Anglo American for R3.4bn.
To this end, the tribunal’s conditions tackle concerns over the sharing of competitively sensitive information between Barnes Southern Palace and Consolidated Wire Industries (CWI), a producer of mild steel wire and wire products that is jointly owned by ArcelorMittal SA, Scaw and the IDC.
“The nominees appointed by the IDC to Scaw’s board shall not have served on the board, management committees or subcommittees of CWI for a period of one year prior to being nominated to the board of Scaw,” read part of the statement released by the tribunal said on Monday.