Tuesday 8 May 2018

EU conditionally clears steel firm merger

EU conditionally clears steel firm merger

The EU has conditionally cleared ArcelorMittal's acquisition of Ilva.

Both companies are significant producers in Europe of hot rolled, cold rolled and galvanised flat carbon steel - the decision is conditional on divesting an extensive remedy package to preserve effective competition in the sector.

ArcelorMittal has a wide production network across the European Economic Area (EEA) and Ilva has major production assets in Italy.

Under the conditions, ArcelorMittal has proposed to sell a number of steel plants throughout Europe to one or more buyers, who will run them to compete with ArcelorMittal, preserving effective competition and avoiding unfair trade distortions.

Commissioner Margrethe Vestager said: "Today's decision makes sure that ArcelorMittal's acquisition of Ilva, creating the by far largest steelmaker in Europe, does not result in higher steel prices – at the expense of European industries, the millions of people they employ and consumers.

Written by

Bruna Pinhoni

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