Conditional approval given to Hebei-Duferco merger

 Johannesburg - The competition authorities have approved with conditions a merger between China's Hebei Iron and Steel Group and Swiss-based Duferco International Trading Holding, which has units in the southern African country.

Hebei, China's largest steel-making group, raised its stake in Duferco to 51% last year, to increase the state-owned conglomerate's ability to sell steel overseas.

The competition commission said part of the conditions for the merger were that there be no retrenchments at Duferco's South African subsidiaries, which include Duferco Steel Processing (DSP) and Duferco Distribution Services (DDS).

The commission also stated that Hebei should not change its plans to develop a steel plant in South Africa, saying it needed to protect the public interest concerns arising from the merger.

The merger has put Hebei in control of a big European trading firm, underlining China's dominance in the steel market in which the Asian giant is the world's largest producer and consumer of the alloy.