The European Commission approved, on Monday 4 May, Aurubis' acquisition of Metallo, a large copper scrap refiner, on the grounds that the merger would not adversely affect competition in the European Economic Area or any substantial part of it.
Margrethe Vestager, Executive Vice President in charge of competition policy, believes that a well-functioning circular economy in copper is important to ensure a sustainable usage of resources in the context of the ‘European Green Deal’.
The Commission had launched an in-depth investigation into the proposed acquisition of Metallo by Aurubis (see EUROPE 12372/25).
The Commission investigated whether the transaction would allow the merged entity to increase its buying power and impose lower prices for its purchases of copper scrap.
As regards the market for copper scrap for smelting and refining (‘CSSR’), the Commission found that the merger would not lead to a significant impediment of effective competition. Indeed: - the companies' combined market share in the purchasing of CSSR will remain moderate after the transaction; - Aurubis and Metallo did not compete closely before the transaction; - a large number of alternative purchasers of copper scrap will continue to constrain the merged entity after the transaction.
Moreover, the merger will lead to possible synergies in the refining of copper scrap, also in view of the complementarities between the parties' technological focuses.
With respect to copper scrap no. 2, no significant impediment to effective competition was found (due to a large number of alternative outlets available to suppliers).
The Commission also concluded that no concerns would arise with respect to vertical relationships between the parties, in particular regarding copper rods and copper shapes produced by Aurubis, for which Metallo is a potential input supplier of copper cathodes. (Original version in French by Lionel Changeur)