The European Commission has approved Italian steel company Marcegaglia’s pending takeover of plate mill Palini e Bertoli, part of Russian mining and steel group Evraz.
Evraz Palini and Marcegaglia Plates are both active in the manufacturing of heavy quarto plates but the proposed acquisition does not raise competition concerns as the companies’ combined share of the heavy plate market would be limited, the commission concluded.
“We are aiming to strengthen through the synergies both companies and, in line with the market needs, to use all the designed capacity of the two mills”, Marcegaglia Chairman and CEO Antonio Marcegaglia told S&P Global Platts Thursday.
The deal is expected to be finalized by early December, industry sources said.
Marcegaglia has been in advanced talks for several weeks to buy Palini e Bertoli from Evraz. Once the deal is concluded, the Italian company will expand its 380,000 mt/year plate capacity to 800,000 mt/year.
Marcegaglia’s range of heavy plates is manufactured in San Giorgio di Nogaro, northeast Italy. The plant processes plates with up to 200 mm thicknesses and up to 2,700 mm widths. Palini e Bertoli produces plates in 10-250 mm thicknesses and 1,500-3,000 mm widths.
Evraz is seeking to divest Palini e Bertoli as plate is no longer part of its core business. The steelmaker stopped being an important participant in this market after selling its Czech heavy plate mill, Vitkovice Steel, in 2014.