On Wednesday 8 November, the European Commission opened an in-depth investigation into the planned acquisition of Ilva by ArcelorMittal, due to concerns of a distortion of competition in the flat carbon steel products market.
Both companies are active in this market segment. ArcelorMittal is the largest producer of flat carbon steel in Europe and the world, with a large production network within the European Economic area (EEA). Ilva also produces flat carbon steel, with major production assets in Italy. The planned operation would allow the steel giant to tighten its grip on the sector, particularly through the acquisition of Ilva's steelworks in Tarento, Italy, the largest single-site integrated plant in Europe.
The Commission has concerns that the potential merger between the companies would lead to an increase in prices for hot-rolled, cold-rolled and galvanised flat carbon steel products, due to a reduction in supply. The operation could also damage many small and medium-sized enterprises (SMEs) in the construction sector, car building and household electronic goods, which face stiff international competition and constitute a significant proportion of the customer base in question.
The Commission considers that the commitments presented by ArcelorMittal on 19 October following the notification of the operation on 21 September are not enough to conclude that the planned acquisition is compatible with EU rules on mergers. It has therefore decided to open an in-depth investigation and will return its decision within 90 days. (Original version in French by Lucas Tripoteau)