EU approves acquisition of HKM by Salzgitter Mannesmann
The European Commission has approved the acquisition of the German company Hüttenwerke Krupp Mannesmann (HKM) by the local company Salzgitter Mannesmann GmbH in accordance with the EU Regulation on Mergers. The transaction was reviewed under a simplified merger procedure.
According to the Commission, the proposed acquisition does not raise concerns about competition within the European Economic Area.
The Commission concluded that the transaction would not significantly hinder effective competition due to the companies' market positions and limited overlap in their activities.
In February, thyssenkrupp Steel and Salzgitter AG reached an agreement on the future of the HKM joint venture, with thyssenkrupp selling its stake in HKM to the latter, as previously reported by SteelOrbis. As part of the agreement, the supply of HKM steel to thyssenkrupp Steel will be completed at the end of 2028, four years earlier than the previously planned deadline of 2032.
The deal strengthens efforts to restructure the German steel sector.
The acquisition is part of a broader effort to restructure and consolidate Germany's steel industry, which continues to face weak demand, high energy costs, pressure from decarbonization investments, and increasing import competition.
The transaction is expected to contribute to the optimization of operational activities and the long-term strategic positioning of the companies involved.
Author: Editorial staff of SteelOrbis
Steelorbis.com