The European Commission, in accordance with the EU Regulation on Mergers, has approved the acquisition of the German plant Hüttenwerke Krupp Mannesmann (HKM) in Duisburg by Salzgitter Mannesmann.
The deal primarily concerns the production of semi-finished carbon steel products, the Commission writes.
In February, Germany's largest steel companies Salzgitter AG and thyssenkrupp Steel agreed to transfer tk Steel's 50% stake in HKM to Salzgitter AG's division, Salzgitter Mannesmann, effective June 1 (see "Callanish" dated February 6).
Currently, Salzgitter owns 30% of HKM shares. The remaining 20% belongs to the French pipe manufacturer Vallourec, which has closed its plants in Germany in recent years. As part of the agreement, the company is selling its stake to Salzgitter.
HKM is one of the largest slab plants in Germany with a potential capacity of about 5 million tons of slab per year, but without rolling equipment. For the parent company tk Steel thyssenkrupp, the ownership of HKM has become an obstacle on the group's path to transform its steel division into a separate independent company.
At the same time, HKM slabs are the raw material for the production of Salzgitter Mannesmann pipes.
The European Commission concluded that the announced deal would not raise concerns about competition, given the limited impact on the market structure. The announced deal was reviewed under a simplified merger review procedure, the statement said.
Author: Christian Kel
Kallanish.com
