On Wednesday 1 August, the European Commission launched an in-depth investigation into the planned acquisition of Aurubis Rolled Products and Schwermetall by Wieland, amid concerns that the operation may bring about competition distortion on the market for the supply of copper components.
Wieland and Aurubis Rolled Products are both German companies active in rolled copper products and copper alloys, components used in the design of several products, particularly in electricity or construction. Aurubis Rolled Product also produces billets, an input in the manufacturing of copper tubes. Schwermetall, which is also German, produces copper alloys and pre-rolled copper strips, which are used in the production of rolled copper products and which it sells to Wieland and Aurubis Rolled Products, amongst others.
When the operation was notified to it on 13 June of this year, the Commission first considered, after an initial investigation, that the planned operation may have negative repercussions for competition in the copper components sector.
In particular, it had concerns that eliminating all competition between Wieland and Aurubis Rolled Products would lead to an increase in prices and a reduction in choice of rolled copper products, particularly alloys. The institution also had concerns that Wieland would be able to create significant tariff or operational barriers to its competitors concerning the acquisition of pre-rolled strips of billets, once it owned Schwermetall and Aurubis Rolled Products.
Wieland submitted its commitments to the Commission on 11 July to dissipate these concerns, but the institution felt that they were insufficient. It now has until 10 December to make its decision. (Original version in French by Lucas Tripoteau)