The European Commission (EC) has announced that it has started an in-depth investigation to assess the proposed acquisition of Italian steelmaker Ilva by AM Investco Italy Srl (AM Investco), global steel giant ArcelorMittal‘s consortium with Italian steel processor Marcegaglia, under the EU Merger Regulation, stating that it has concerns that the merger may reduce competition for a number of flat carbon steel products. The commission now has 90 working days, until March 23, 2018, to take a decision.
The commission's initial market investigation raised several issues relating in particular to the combination of ArcelorMittal's and Ilva's offering of a number of flat carbon steel products, namely hot rolled, cold rolled and galvanized flat carbon steel products. At this stage, the commission is concerned that, following the transaction, customers would face higher prices, particularly in southern Europe, for these important inputs. These customers include numerous companies, many of which are small and medium-size enterprises. They are active in sectors ranging from construction to car manufacturing, household appliances, tubes and many more. Many of those industries compete with imported products in the European Economic Area (EEA), or export their products outside Europe and compete globally.
Meanwhile, ArcelorMittal has announced that it will continue to work closely and constructively with the European Commission to explain the dynamics of the steel industry, the rationale of the proposed acquisition and the benefits it will bring to industry, customers, the environment and the local economy.