European Commission green lights Erdemir acquisition
The European Commission approved under the EU Merger Regulation the proposed acquisition of the Turkish sole integrated flat steel producer Eregli Demir ve Celik Fabrikalari T.A.S (Erdemir), by Luxembourg-based steel giant Arcelor and the Turkish Armed Forces Pension Fund (OYAK). The Commission found that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it. Headquartered in Luxembourg, Arcelor is active in four markets: flat carbon steel, long carbon steel, stainless steel and steel related services. Erdemir is the largest Turkish steel producer, active in the production and sale of various steel products and related services. Turkish Armed Forces Pension Fund (OYAK) owns equity interests in companies active in various sectors, including financial services, cement, automotive, food processing, trade, logistics and technology. The European Commission indicated that Arcelor's and Erdemir's activities overlap to a minimal extent in some of the markets for carbon steel long flat products and electrical steel. The European Commission added that their activities overlap 'more significantly' in the markets for carbon steel flat products. However, while Arcelor is an important player in these markets, Erdemir's exports of carbon steel flat products to EEA countries are negligible. Consequently, the transaction will give rise only to very limited additions of market shares while important competitors, including Germany's ThyssenKrupp and Anglo-Dutch Corus, will remain active in these markets.