The European Commission opened an in-depth investigation on Tuesday 19 November to examine whether Aurubis’ proposed acquisition of Metallo complies with EU merger rules.
The merger would bring together the two largest copper scrap purchasing and refining companies in Europe, which would significantly increase the combined market shares in the sectors of purchasing and refining copper scrap, the Commission explains.
It considers that the two companies are the closest competitors to each other, in particular as regards the purchase and refining of complex and tin-bearing copper scrap.
For the companies that supply these materials, Aurubis and Metallo could become the only two viable purchasers.
The original investigation further suggests that the export of certain types of copper scrap may not be a viable alternative, as there appear to be regulatory limits on the export of certain types of waste and the costs of long-distance transport may hinder the profitability of exports.
The Commission has concerns at this stage that the operation will give the merged entity a dominant position in the purchase of copper scrap for refining, thereby giving it increased buying power to negotiate lower prices for the copper scrap it purchases. (Original version in French by Lionel Changeur)