EC approves Marcegaglia’s Severstal Distribution acquisition

The European Commission has approved Marcegaglia’s 100% acquisition of Latvia-based SIA Severstal Distribution from Russian parent Severstal.

The Commission concluded that the proposed acquisition would raise no competition concerns, given the limited overlaps and vertical links between the companies’ activities in the relevant markets in the European Economic Area. The transaction was examined under the simplified merger review procedure.

The decision is “taken without prejudice to the application of EU restrictive measures, including targeted financial sanctions applicable to certain Russian individuals and entities, and the assessment thereof that may be made by the competent national authorities of the Member States,” the Commission says in a note seen by Kallanish.

The Italian steel processing group’s Marcegaglia Carbon Steel subsidiary is set to acquire full control over the Riga-based service centre, as well as its subsidiaries Severstal Distribution Sp.z.o.o. in Poland and Severstal Distribution OOO in Ukraine.

Since the outbreak of war in Ukraine and consequent EU sanctions against Russia, it has become increasingly challenging for Severstal to continue operating its European subsidiary.

Adam Smith Poland