The European Commission opened, on Thursday 6 October, an in-depth investigation to assess the proposed acquisition of Alumetal (Poland) by Norsk Hydro (Norway) under the EU Merger Regulation.
The Commission is concerned that the proposed acquisition may reduce competition in the production and supply of aluminium foundry alloys and master alloys in the European Economic Area (EEA).
Norsk Hydro and Alumetal are both producers of aluminium foundry alloys, which are semi-finished aluminium products used mainly by the automotive industry to cast auto parts. The Commission has preliminary concerns that by acquiring Alumetal, Norsk Hydro will reinforce its leading position as a supplier of aluminium foundry alloys, and may eliminate a growing competitor able to bring cheaper and advanced recycled aluminium products to the market.
The Commission is concerned that the transaction may reduce choice and higher prices for foundry alloys and aluminium master alloys. In particular, the Commission is worried that by acquiring Alumetal, Norsk Hydro would eliminate one of the largest and most capable competitors in the EEA.
Following the combination of Alumetal’s production of master alloys upstream and Hydro’s production of casthouse products, there would be limited or no credible alternative master alloy suppliers remaining. More information: https://aeur.eu/f/3hc (Original version in French by Lionel Changeur)