The European Commission (EC) has approved the acquisition of the French waste recycling group Derichebourg Environment by the German Scholz, considering the deal compatible with the internal market and the EEA agreement, Kallanish reports from an official statement.
The Commission received notification of the proposed concentration on June 30. As part of the deal, Derichebourg Environment, controlled by Daniel Derichebourg, will acquire sole control of Scholz Holding and Scholz Recycling and their subsidiaries, which are currently owned by Hong Kong-based Chiho Renewable International Holding, through the purchase of shares.
"The European Commission has concluded that the claimed operation falls within the scope of the Merger Regulation and paragraph 5 (d) of the Commission's Notification of a simplified regime for Certain Concentrations in accordance with Council Regulation (EC) No 139/2004. (4) The European Commission has decided not to oppose the claimed operation," the statement said In May, Fitch Ratings placed the long-term Derishburg issuer default rating and the priority unsecured rating, both at "BB+", on the "Rating Watch" list with a negative outlook. This reflects Fitch's expectations that the acquisition of Scholz Recycling Group will lead to increased leverage while reducing leverage over a longer period of time, given Scholz's low profitability and the time required to integrate Derichebourg's systems and practices.
Derichebourg expects demand for scrap metal to increase in the second half of the year, driven by the introduction of stricter EU quotas and new customs duties in July. In its first-half profit and loss statement covering the period ended March 31, Derichebourg warns that the prolonged closure of the Strait of Hormuz could lead to the spread of the current crisis to the economy as a whole (see Kallanish passim).
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, ,, The author:Natalia Capra, France,
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