Theo Steil acquires fellow German scrap merchant

Germany-based Theo Steil has acquired fellow scrap supplier Rhein Main Rohstoffe (RMR). The acquirer says this will strengthen its market position and provide high-quality scrap for the domestic steel industry, Kallanish notes.

“We at the Theo Steil are very pleased to announce a significant strategic partnership, because together with RMR we are now forming a strong recycling alliance,” Theo Steil says. “With six locations in Frankfurt (Westhafen & Riederwald), Siegen, Stockstadt, Haiger and Bischofsheim, the alliance with RMR brings not only fresh energy but also valuable expertise to the group. This partnership is a decisive step to strengthen our joint position in the Rhine-Main area and the Haiger-Siegen region and to intensify our joint focus on green steel and sustainable raw material solutions for our customers.”

By merging the two companies, each side brings its own strengths, which combined will lead to a significant boost and “catapult the Steil Group into a leading position in the European market”, it adds.

Theo Steil is primarily active in recycling and trading in western and eastern Germany. The company also has a deep-sea terminal in Dordrecht, the Netherlands, which provides access to all international markets. It has the capacity to handle vessels of up to 50,000 tonnes.

Rhein Main Rohstoffe operates in and around Frankfurt am Main. The company collects and processes around 400,000 t/year of ferrous and non-ferrous material.

The German federal competition authority (Bundeskartellamt) cleared the acquisition in July.

The acquisition is “not expected to significantly restrict competition,” said Bundeskartellamt president Andreas Mundt. “This merger of two medium-sized companies will enhance the industry’s structural diversity in the long run. For the steel industry, using recycled scrap is an essential step towards low-emission steel production. Competition at the level of secondary raw material recycling thus significantly contributes to supplying the steel industry with high-quality input material.”

In contrast to when TSR Recycling, which belongs to the Rethmann Group, announced its intention to acquire RMR in 2021, the present case does not give rise to concerns about the group gaining uncontrolled scope over the purchase and recycling of scrap for processing with shears, according to the Bundeskartellamt.

“The investigations have shown that due to the parties’ market position and competitors’ activities in different markets, it is to be expected that all market participants will continue to experience sufficient competitive pressure in the future,” it noted.

Svetoslav Abrossimov Bulgaria

kallanish.com