Spanish seamless tube maker Tubos Reunidos SA and Basque metal tubing group Condesa have called off their previously announced merger plan.
The decision was attributed to the deterioration in market conditions, as the companies explained that the economic slowdown has made it difficult to generate the industrial synergies originally expected.
If the merger were realized, with a combined production output of 2.2 million metric tons the new company would be the second largest tube producer in Europe and the sixth largest in the world.
Tubos Reunidos currently has respective market shares of 35, 10 and two percent in Spain, Europe and the world. Meanwhile, Condesa holds market shares of 30 and 15 percent in Spain and Europe respectively.