The European Commission has approved the acquisition of French Groupe Ecore by France-based metal scrap recycler Derichebourg. The approval came after the proposed remedies which will ensure that competition remains vibrant in the French recycling market. The transaction which was notified to the Commission on October 26 is expected to be completed by the end of 2021, or the beginning of 2022, SteelOrbis has learned.
Previously, the EC found that the merger would lead to significant horizontal overlaps between the activities of the companies in the collection and recycling of metal scrap, including end-of-life vehicles, in several local markets in France; the recycling of electrical and electronic equipment scrap in several local markets in France; and the commercialization of shredded ferrous scrap in several local markets covering France and neighboring countries.
“Derichebourg directly competes with Group Ecore on the collection and recycling of metal scrap in several regions in France. Together, they would have had a strong position in these markets and the acquisition would have eliminated an important alternative for customers and suppliers,” Margrethe Vestager, European Commissioner for Competition, said.
Derichebourg offered to divest four recycling plants in France incorporating a shredder and four collection sites; up to five additional collection sites in France located in the same catchment area of the recycling plants divested; transitional service agreements, including access to all assets and services required to operate the divested business competitively for a duration enabling the divested business to become fully independent from Derichebourg to address the Commission’s competition concerns.