Steelmaker Riva Acier France is in the process of buying eight plants from recycling group Derichebourg.
Last year, Derichebourg bought metal recycling group Ecore. The European Commission gave the go-ahead for the acquisition on the condition that Derichebourg divests four shredders in France and four collection sites. According to Derichebourg, the eight sites will be taken over by Riva Acier from 1 January 2023.
Derichebourg reported strong results in its fiscal year through September 2022. Global revenue increased by over 45% on-year to €5.3 billion ($5.6 billion). Derichebourg sold over 4.5 million tonnes of ferrous scrap, up from 3.9mt in 2021, reflecting a 29.4% y-o-y increment. Scrap revenue also hiked by as much as 59.7%, reaching €2.1 billion, up from €1.3 billion the previous year, the company says in its financial report monitored by Kallanish.
In 2022, Ebitda reached a record level of €510.1 million, representing 9% of turnover. The estimated contribution of Ecore was around €115m, the report states.
In the first month of the new financial year, sales scrap volumes were impacted by the global economic downturn, causing clients to keep their stocks low against the backdrop of high energy costs. However, the company says recent lower energy prices and a slightly more favourable economic outlook are forecast to support a volume recovery.
The integration with Ecore is currently underway. Last year, while the EC was examining the merger, competition policy vice president Margrethe Vestager said the two firms would have had a strong position in the European market. Authorities said they approved the acquisition of Ecore thanks to Derichebourg’s guarantee of comprehensive divestments “that will ensure that competition remains vibrant in the French recycling market” (see Kallanish passim).
Natalia Capra France