Aurubis Acquisition Deal Falls Under EC Investigation
The EC has also ordered an investigation into the proposed $93 million acquisition of MKM Mansfelder Kupfer und Messing GmbH by KME AG.
SEATTLE (Scrap Monster): The European Commission (EC) has launched investigations into proposed acquisitions in copper sector, mainly on the grounds of fears that such big-ticket deals may harm competition in the sector. One of the deals involves the acquisition of operating facilities of Aurubis by Germany-based Wieland-Werke AG.
According to media reports, the EC antitrust regulators have opened an in-depth investigation to examine whether the deal is likely to impact the customers and consumers of both the companies. They also raised concerns that the deal may hurt competition. The EC investigation is expected to be completed by Dec 10, 2018. Meantime, the EC Competition Commissioner Margrethe Vestager stated that the deal would bring together two top suppliers in the industry that is already highly concentrated.
Earlier in February this year, Aurubis AG- the world’s largest copper recycler and the largest copper producer in Europe had reached an agreement with Wieland-Werke AG towards sale of its flat rolled operations in the US, Netherlands, Finland and Germany, in addition to copper processing centres in Slovakia, Italy and Britain.
The EC has also ordered an investigation into the proposed $93 million acquisition of MKM Mansfelder Kupfer und Messing GmbH by KME AG- one of the leading players in the European copper and copper alloy semifinished product industry. The transaction is expected to lead to the creation of a € 3 bn turnover entity.