The European Commission and the US competition authority have approved the acquisition of a majority stake in Finland-based stainless steel producer Outokumpu’s longs business by Italy-based Marcegaglia Steel Group. Given the limited overlaps between the companies' activities and the fact that a number of strong players will remain in the market after the merger, the Commission concluded that the proposed acquisition would raise no competition concerns.
In addition to the regulatory approvals, the completion of the transaction is subject to customary closing conditions and Outokumpu expects to complete the transaction in the beginning of next year.
As SteelOrbis reported earlier, the transaction includes long product melting, rod and bar operations in Sheffield, UK; bar operations in Richburg, US; and the wire rod mill in Fagersta, Sweden.