The European Commission rejected on Wednesday 6 February, the proposed acquisition of Aurubis Rolled Products by Wieland and Aurubis’ shareholding in Schwermetall, on the grounds of the impact that these transactions could have had on competition in the market for rolled copper products.
"With the merger, Wieland would have become the dominant player in the market for rolled copper products. It would have had a market share in Europe of over 50%, with only one other competitor with a market share of above 10% remaining”. This is one of the justifications given by Margrethe Vestager, European Commissioner for Competition, for the Commission's decision to veto these proposed transactions.
This decision follows the opening of an in-depth investigation into these German companies last August (see EUROPE 12076). The institution was concerned at the time, in particular, that the proposed transactions would enable Wieland, the leading supplier of rolled products in the European Economic Area (EEA), to eliminate any competitive pressure in this market segment.
During its investigation, the Commission received several letters from industrial customers of the companies concerned, saying they were worried about the effects of the possible operation. They feared less access to the prelaminated strips produced by Schwermetall and higher prices for rolled products.
The Commission's analysis confirmed its initial concerns. In addition, the corrective measures proposed by Wieland, which stated that it was simply ready to divest two Aurubis plants, did not address its concerns regarding competition. For this reason, the Commission decided to ban the proposed transactions. (Original version in French by Lucas Tripoteau)