BlueScope buys OneSteel assets

BlueScope Steel (BSL) has agreed to acquire Arrium's (ARI) OneSteel sheet and coil processing and distribution businesses in Sydney, Brisbane, Adelaide and Perth.

In a statement to the Australian Securities Exchange, BlueScope said it will pay inventory value at completion, which was $23.1 million at September 30.

BlueScope expects to incur net integration costs of $7 million.

The acquisition is expected to be earnings per share accretive for the group in fiscal 2015.

The deal is subject to Australian Competition and Consumer Commission approval and completion is set for the end of the December quarter.

BlueScope's chief executive officer for Australia and New Zealand, Mark Vassella, said the businesses are close to BlueScope's core Australian operations.

"The acquisitions are a further step towards improving the efficiency with which we can serve Australian customers by lowering costs," he said.

The deal allows Arrium to offload its loss-making steel division and focus on its iron ore operations that are set to deliver a profit boost in the current year (see Arrium's iron-ore booster).