Tubos Reunidos, the dominant partner in the merger, stated that the need for increased market competitiveness was the main factor behind the agreement. With a combined production output of 2.2 million metric tons, the new company will be the second largest tube producer in Europe and the sixth largest in the world.
Tubos Reunidos currently has respective market shares of 35, 10 and two percent in Spain, Europe and the world. Meanwhile, Condesa holds market shares of 30 and 15 percent in Spain and Europe respectively.
The merger will involve absorption by Tubos Reunidos of the Larreder and Aranguio companies which control Condesa, while shares will be fully subscribed by Condesa's majority shareholder Bogoeta.