The European Commission (EC) has given the go-ahead for the acquisition of French metal recycling group Ecore by scrap French market leader Derichebourg on the condition the latter divests assets, Kallansh learns from the company.
“Derichebourg is the leading metal scrap recycler in France and directly competes with Group Ecore on the collection and recycling of metal scrap in several regions in France,” European Commission competition policy vice president Margrethe Vestager says in a note. “Together, they would have had a strong position in these markets and the acquisition would have eliminated an important alternative for customers and suppliers. We approved the acquisition of Group Ecore thanks to comprehensive divestments that will ensure that competition remains vibrant in the French recycling market.”
For the merger to be successful, Derichebourg offered the EC competition office to divest four plants in France and four collection sites. It also proposed up to five additional collection sites in France in the same area of the divested plants. This will contribute to the supply of metal scrap to shredders, the EC explains. It adds that the company will provide access to all assets and services required to operate the divested facility competitively and independently from Derichebourg.
Thanks to these commitments, the Commission says the merger no longer implies competition issues.
Derichebourg had a turnover of €3.6 billion ($4 billion) for its 2021 financial year. In 2020, Ecore posted a turnover of €880 million – it employs 1,323 workers and recycles 2.8 million tonnes of metal waste.
Natalia Capra France
