European Commission Approves ArcelorMittal's Acquisition of Ilva
07 May 2018 - 8:50PM
Dow Jones News
By Anthony Shevlin
The European Commission on Monday approved ArcelorMittal's
(MT.AE) acquisition of Italian steel plant Ilva, subject to
conditions.
The commission said the decision is "conditional on the
divestiture of an extensive remedy package to preserve effective
competition on European steel markets to the benefit of consumers
and businesses."
The commission had concerns that the transaction as notified
would have resulted in European customers facing higher prices for
hot-rolled, cold-rolled and galvanized flat-carbon steel.
Commissioner Margrethe Vestager, in charge of competition
policy, said: "Steel is a critical input for many European
industries and products we use every day. Today's decision makes
sure that ArcelorMittal's acquisition of Ilva, creating the by far
largest steelmaker in Europe, does not result in higher steel
prices."
To address the commission's concerns, ArcelorMittal offered to
divest assets in different European countries, including Belgium,
Italy and Luxembourg. The company also offered to divest some
distribution assets in France and Italy.
The commission said ArcelorMittal proposed to remove Italian
steel company Marcegaglia from the consortium purchasing Ilva and
committed not to acquire shares in Marcegaglia as part of the
transaction.
Write to Anthony Shevlin at anthony.shevlin@dowjones.com
(END) Dow Jones Newswires
May 07, 2018 06:35 ET (10:35 GMT)
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