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European Commission Approves ArcelorMittal's Acquisition of Ilva

7 May 2018 10:20 am
 
   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 06:20 ET (10:20 GMT)

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