The European Commission, under the EU Merger Regulation, has approved the acquisition of German mill Hüttenwerke Krupp Mannesmann (HKM) in Duisburg by Salzgitter Mannesmann.
The transaction relates primarily to the manufacture of semi-finished carbon steel products, the Commission writes.
In February, Germany’s largest steelmakers, Salzgitter AG and thyssenkrupp Steel agreed on a transfer of tk Steel’s 50% stake in HKM to Salzgitter AG’s subdivision Salzgitter Mannesmann, effective 1 June (see Kallanish 6 February).
Salzgitter so far holds 30% in HKM. The remaining 20% was held by French tubemaker Vallourec, which had closed its German mills in recent years. The agreement sees it selling its stake to Salzgitter.
HKM is one of the biggest German slab mills with a potential capacity of around 5 million tonnes/year of slab, but no rolling facilities. For tk Steel’s parent thyssenkrupp, the ownership in HKM had become a hurdle in the group’s endeavour to make its steel division a separate independent company.
Meanwhile, HKM slabs are feedstock for Salzgitter Mannesmann’s tubes production.
The European Commission concluded that the notified transaction would not raise competition concerns, given the limited impact on the market structure. The notified transaction was examined under the simplified merger review procedure, it says.
