Global stainless steel producer Aperam has announced that it has terminated the Share Purchase Agreement with Falcon Metals and Lindsay Goldberg Vogel to acquire US-based VDM Metals Holding GmbH (“VDM Metals”) upon objections by the European Commission.
According to the company statement, despite spending considerable time and effort on explaining the specific nature of the speciality alloys market as well as the benefits of creating a strong European player able to compete in a truly global market, the European Commission upheld its concerns about the impact of the proposed merger, a possible reduction in competition.
Aperam’s CEO Timoteo Di Maulo quoted as saying that “Today, the European industry is put under tremendous pressure from global competition, in particular from Asia where giant plants are built with often unfair subsidies, and the USA, where these industries and markets are highly protected. The Speciality Alloy Division is addressing the same global markets, in an environment where enlarged product offering, scale and R&D capabilities are essential to compete.”