The European Commission opened an in-depth investigation on Monday 25 March into Novelis' proposed acquisition of Aleris to determine whether the transaction would comply with EU competition laws.
Both companies are global players in the market for flat rolled aluminium products. Both have significant assets in the European Economic Area, particularly in Germany, Belgium, Italy and the United Kingdom.
The Commission is now concerned that the proposed transaction, notified on 18 February, will reduce the number of sources of supply and therefore increase prices for aluminium automotive body sheets. The customers of both companies are, in this respect, car manufacturers and other companies in the automotive supply chain.
In addition, the institution will examine the effects of this potential merger on certain flat rolled aluminium products used in other sectors, in particular in the construction and underfloor heating sectors.
The European Commission has 90 working days to issue its decision. (Original version in French by Lucas Tripoteau)