Brussels, 4 th February 2010
Mergers: Commission approves proposed acquisition of metal scrap company Kovosrot by Scholz AG and voestalpine
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of joint control of Kovosrot Group CZ a.s. of the Czech Republic by Scholz AG of Germany and the Austrian steel producer voestalpine. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Scholz AG trades, collects and processes ferrous and non-ferrous metal scrap. Together with voestalpine it controls Scholz Austria which also trades in metal scrap and operates scrap yards in Austria and the Czech Republic. Kovosrot trades, collects and processes metal scrap and is currently solely controlled by Scholz AG. Under the proposed transaction, Scholz AG and Scholz Austria would acquire joint control over Kovosrot.
The indirect entry of voestalpine as a controlling partner in Kovosrot is the only change the proposed transaction would bring about. In view of the parties' relatively minor shares of metal scrap markets and considering voestalpine's position as a steel producer, the Commission concluded that there would be no risk of any of scrap metal supplies being closed off to other steel and non-ferrous metal producers, as a sufficient number of alternative and competing sources of supply and sale channels would remain in existence. The transaction would not result in any horizontal effects since the shares of Kovosrot and Scholz Austria on the markets for the trade; collection and processing of metal scrap were already attributable to Scholz AG.
More information on the case will be available at: