Dublin-based Galco Steel is to acquire the operations of Co Derry-based Sperrin Galvanisers, subject to approval by the Competition Authority.

Galco is buying the company's operations in Northern Ireland and the Republic. Sperrin Galvanisers is based in Draperstown, Co Derry, and also has operations in Loughrea in Galway.

The Competition Authority has said it has decided to carry out a full phase-two investigation into the proposed acquisition by Galco Steel Limited of Sperrin Galvanisers (Irl) Limited and Sperrin Galvanisers Limited.

All of the parties are involved in the provision of steel corrosion protection systems in the island of Ireland, the authority said.

Galco, which has its headquarters in Walkinstown in Dublin, has operations in Cork and Waterford.

The Competition Authority said it received notification of the proposed acquisition on June 12th, 2007, and is required under part three of the Competition Act 2002 to determine whether the result of the proposed acquisition would "substantially lessen competition" in markets for goods and services in the State.

A preliminary investigation into the proposed acquisition had been unable to conclude without further investigation that the transaction would not substantially lessen competition, it said.

It has until November 17th to make a final determination on the transaction. The proposed acquisition has not been notified in any other jurisdiction.

Galco Steel reported pretax profits of €27.6 million for the year ended on May 31st, 2006, boosted by the sale of land worth €25 million. Operating profits for the year stood at €2.3 million, compared to €3.1 million at the end of May 2005.

Galco is chaired by former ESB chairman William McCann. Other directors include managing director Bernard Shanley, the Quinn family, Mary Crossan and company secretary Declan O'Dwyer.

Sperrin Galvanisers' abbreviated balance sheet showed a profit and loss account of £718,694 for the end of April 2006.