Description of Activities

Description of transaction: The Commission resolved to approve without conditions the acquisition by BSi Steel Holdings Proprietary Limited of 100% of the issued share capital in Clotan Steel Proprietary Limited. 

Acquiring group: The primary acquiring undertaking is BSi Steel Holdings, a South African holding company that manages equity interests in subsidiaries operating in the steel processing and distribution sector. The acquiring group is active in in-house steel processing services, which involve the transformation of primary steel materials into semi-finished or customized forms. They also do roofing and Light Steel Framework through their subsidiary Glenmor Investments. The acquiring group is also involved in the distribution of steel products, including primary, semi-finished, and finished steel products, to various sectors such as construction, mining, and infrastructure. In Namibia, the acquiring group operates through its subsidiary Glenmor Investments. The acquiring group also exports products into Namibia via its South African subsidiary, BSi Steel Export Proprietary Limited. 

Target undertaking: The primary target undertaking is Clotan Steel. Clotan Steel is a South African company that manufactures and distributes steel products, with a primary focus on roofing and steel processing services. Its operations include the production and supply of roofing products and accessories for residential, commercial, and industrial applications, as well as steel processing and forming services, which involve the processing of steel coil and sheet into customized profiles and sections for structural and roofing applications. 

Relevant market: Defined as the market for the distribution of steel products in Namibia. 

Merger Determination

The Commission found the proposed transaction unlikely to result in the prevention or substantial lessening of competition or result in any undertaking to acquire or strengthen a dominant position in the market and did not raise any public interest concerns.

However, as stated under section 50 of the Act, this approval does not relieve parties from complying with any other mandatory statutory approvals that any of the parties to this merger must comply with under Namibian laws.