BSI Steel (BSI) said on Monday that all of the remaining conditions precedent to its acquisition of 100 percent of plate service centre and trading business Brown McFarlane Africa (BMFA) and property holding company West Dunes have been fulfilled.
This follows the unconditional approval of the deal by the competition authorities.
In terms of the deal‚ BSI will acquire BMFA and West Dunes for about R35m.
BSI said at the time of announcing the deal in March that its growth strategy was underpinned by expanding its geographic footprint and product range.
BMFA meets both these criteria‚ giving BSI a footprint in Richards Bay as well as increasing its plate sales‚ especially in quenched and tempered grades. BMFA also provides extra processing capacity to BSI’s existing service centre.
About 70 percent of BMFA’s material sold is processed through the service centre‚ where value is added through processes including cutting to shape‚ rolling & drilling. BMFA has two processing centres‚ one in Richards Bay and the other in Dunswart‚ Gauteng.
West Dunes is a property holding company and owns the Richards Bay property.
The effective date of the acquisition is 1 March 2012.