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Image header Agence Europe
Europe Daily Bulletin No. 7804
Contents Publication in full By article 13 / 40
GENERAL NEWS / (eu) eu/competition

Commission opens in-depth investigation of Svedala acquisition by Metso (minerals)

Brussels, 21/09/2000 (Agence Europe) - The European Commission decided to carry out an in-depth investigation on the planned acquisition of Svedala Industri AB by Metso Corporation, as the services have noted the danger of a dominant position in the market for the production of certain rock crushing equipment. Born from the merger in 1999 of Valmet Corporation and Rauma Corporation, the Finish company Metso is active in the sector of rock and mineral processing machinery, automation and control technology, as well as fibre and paper technology. The Swedish company Svedala is active in the treatment of minerals as well as in equipment used for the extraction and treatment of minerals, drilling work and the crushing of rock. The operation considered foresaw the exclusive control of Svedala by Metso through a public tender, the value of the transaction being estimated at EUR 1.1 billion. If it is firmed up, it will lead to overlap of activities by the parties in the field of crushers, equipment which may be segmented depending on the technology used and the kind of application it is intended for or the size of the material. The operation will entail considerable overlapping of activities for small cone crushers and small jaw crushers in several EEA Member States, allowing for the creation of a dominant position. The Commission also plans to examine in greater detail the risks of there being a dominant position on certain mining markets, mainly for very large cone crushers.

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