The European Commission (EC) has approved the acquisition of majority control in Spanish steelmaking group Gallardo Balboa by American investment fund Kohlberg Kravis Roberts (KKR).
“The Commission concluded that the proposed transaction would raise no competition concerns given the minimal horizontal overlaps and vertical links between the activities of the companies,” the EC says. The transaction was examined under the simplified merger review procedure, the EC adds in a note monitored by Kallanish.
On 19 July the Spanish group confirmed it was in advanced talks with KKR to refinance its debts (see Kallanish passim). At the time it did not officially mention the fact KKR was taking over majority control of the entire group through the acquisition of shares.
KKR had already taken control of other assets belonging to the group headed by Alfonso Gallardo in 2014, specifically in the cement and paper production sectors.
Gallardo Balboa produces steel through the EAF route at a number of sites in Spain. It is specialises mainly in the supply of long products and tube.
