By EuAsiaNews
Brussels : The proposed takeover by the world’s largest steel producer of a very small company making galvanized steel products would normally pass largely unnoticed.
But it has highlighted once again the key role of the European Union (EU) authorities in regulating company mergers and acquisitions, to ensure competition across the 27-nation EU single market.
The companies in question are ArcelorMittal and the Galvex group, based in one of the EU’s northern member states, Estonia.
The European Commission, the EU’s executive arm, found after investigation that the proposed merger would not act as a brake on competition in Europe, or in any substantial part of it.
Both ArcelorMittal and Galvex are active in the market for galvanized strip and coils. But given that Galvex’s share in the European market is a mere 0.5 percent, the proposed acquisition would not reduce competition.
Indeed, several of Galvex’s competitors are planning to increase capacity this year, even while imports into the EU of galvanized strips and coils are rising.