The BlueScope Steel Limited (ASX: BSL) share price has climbed in early trade after the Australian Competition & Consumer Commission (ACCC) declined to press criminal cartel charges against the company.
What is happening with the ACCC?
On 30 August, BlueScope announced that the ACCC had commenced civil proceedings against the company and former employee Mr. Jason Ellis.
The Aussie regulator alleged that Mr Ellis attempted to induce Australian steel distributors and overseas manufacturers to engage in price-fixing through contract provisions.
Prior to the market open, BlueScope announced that the ACCC will not be pursuing criminal cartel proceedings against either the company or Mr. Ellis in relation to the same alleged dealings.
According to the release, the civil proceedings remain ongoing while the Commonwealth Director of Public Prosecutions (CDPP) has laid criminal obstruction charges against Mr. Ellis.
Has this affected the BlueScope share price?
Since the 30 August announcement, the BlueScope share price has fallen 6.65% lower to $11.66, prior to this morning's open.
However, the BlueScope share price remains up 7.47% since the start of the year and BlueScope still boasts a market cap of just under $6 billion.
With criminal cartel proceedings being a weight off the company's shoulders, I'd expect to see the BlueScope share price climb higher as investors' confidence is boosted by this morning's announcement.
Should you buy BlueScope shares?
Despite being up for the year, the BlueScope share price has still significantly underperformed the S&P/ASX 200 Index (INDEXASX: XJO) so far this year.
BlueScope shares are currently yielding 0.84% per annum, which isn't enough to entice me to buy them as an ASX dividend stock just at the minute.
I'd personally like to see some sustained capital gains over a period of 6–12 months to really consider adding a stock like BlueScope to my portfolio.
If I were going to gain exposure to a cyclical industry, given the state of the Aussie construction industry, I think I'd prefer to look at a large-cap mining stock such as BHP Group Ltd (ASX: BHP).
While the BHP share price has been hurt by the ongoing US–China trade war tensions, I think the fundamentals remain strong while a 5.41% dividend yield certainly sweetens the deal.
