Brussels, 29/03/2001 (Agence Europe) - The European Commission has cleared the proposed acquisition of Norzinc (Norway), currently held by the British company Rio Tinto Investments Ltd and by the Swedish-Canadian firm Boliden Mineral AB, by Outokumpu Oyj (Finland). Both produce zinc. The operation will give rise to the world's third largest zinc producer after Glencore (United Kingdom) and Union Minière (Belgium). Together, the three groups will represent over half of the zinc market in the EEA but will not have the power to influence prices or hamper effective competition in Europe. The Commission found a number of factors indicating that tacit collusion would be difficult in this sector, namely: 1) zinc prices are based largely on a benchmark price for one specific grade which is determined on the London Metal Exchange and cannot be easily manipulated by suppliers; 2) suppliers are asymmetric players in the market in terms of organisation, cost structures and the range of products that they offer; and 3) end-users consisting mainly of the construction and automobile industry enjoy a non-negligible buyer power. Despite the high degree of concentration of the European zinc market that would result from the operation, the Commission felt that there would be sufficient competition. It therefore authorised the operation.