[miningmx.com] — JSE listed steel company BSI Steel announced on Friday that it is acquiring 100% of the issued shares of the privately-held entities, Staalbeer (Pty) Limited and Universal Pulse Trading 103 (Pty) Limited (collectively Staalbeer) for a maximum consideration of R70m in shares and cash.
Staalbeer is a South African based steel merchant with limited exports to Namibia. It operates through branches situated in Potchefstroom, Bothaville and Vereeniging. It focuses mainly on cash-and-carry, retail, mining, agricultural and industrial steel supply.
BSI Steel operates in the steel and associated industries with operations in South Africa, the Democratic Republic of the Congo, Zimbabwe, Mozambique and Zambia to service the Southern African markets.
The company markets its products through three distinct channels being stockists, bulk sales and exports. Its steel processing operations supports all of these divisions.
According to BSI this acquisition is beneficial because it will expand BSI Steel’s geographical footprint into new areas of South Africa, expand the group’s product range and service offerings, bring expertise on the retail sector into BSI Steel, diversify revenue streams and lastly add critical mass to BSI Steel.
