There was a tinge of sadness at the Smorgon Steel shareholders meeting in Melbourne this morning when the company that famously took on BHP’s steel monopoly in 1981 voted to be carved up by the Big Australian’s two steel offshoots.

With a current share price of $2.75, up from a low of 60c in 2001, it was no surprise that 99.7% of the Smorgon Steel proxies were in favour of merging with Onesteel and selling its distribution business to Bluescope Steel for $700 million.

Chairman Graham Smorgon admitted to being a little sad and spoke proudly of his family’s record in taking on monopolies in various industries. It was also a sad day for Melbourne because the Smorgon head office will be closed and the key functions shifted to Onesteel’s Sydney head office.

With Southern Cross Broadcasting also about to be swallowed by two Sydney-based companies, Macquarie Media and Fairfax, the decline in Melbourne’s status as a corporate centre is seemingly gathering pace.

Whilst Onesteel has the whip hand in management terms with its CEO Geoff Plummer running the combined operation, Graham Smorgon and Macquarie Bank’s Melbourne leader Laurie Cox, will both join the Onesteel board. Macquarie has made many tens of millions advising the Smorgon family since its dramatic break-up was first announced in the mid-1990s.

Today’s vote means that the Smorgon Steel name will disappear as Onesteel is only allowed to use it for the next two years and will quickly re-brand the various plants.

The Smorgon family is worth more than $2 billion but their $300 million-plus worth of Smorgon Steel shares remain one of its largest investments and will translate into about 5% of the expanded Onesteel.

Whilst strong-willed Graham Smorgon will no doubt throw his weight around on the Onesteel board led by fellow Carlton supporter Peter Smedley, he did tell the press after the meeting of plans to sell some of his 17 million shares.

Everyone has emerged a winner from this deal. Bluescope crashed the party buying a 19.9% stake last August when the stock was trading at around $1.70 and will now sell out for $2.73-a-share in cash, which will be used to offset the $700 million owing for the distribution business.

Bluescope shares have rocketed from $7 to $11.50 since that raid, parly on rumors Indian steel giant Mittal is poised to launch a takeover bid.

Similarly, Onesteel shares have soared from $4 to $7 over the same period so there’s been tremendous value created as the industry goes from three players to a cosy duopoly, albeit one that faces stiff import competition.