Green light from the European Commission to the acquisition of Ilva by ArcelorMittal. Brussels has accepted the commitments made by the group, which to obtain the approval of the European executive had put on the table a series of transfers aimed at protecting competition in the European steel market.
ArcelorMittal will thus become the owner of the main activities of Ilva, in particular of the iron and steel hub of Taranto, the largest integrated plant for the manufacture of flat carbon steel products in Europe.
To overcome the EU executive's uncertainties about competition, ArcelorMittal had proposed some commitments which, Brussels explains, have "completely allayed the Commission's fears relating to hot-rolled, cold-rolled and galvanized flat carbon steel products".
In particular, ArcelorMittal has proposed to divest assets in Belgium (Liege), the Czech Republic (Ostrava), Luxembourg (Dudelange), Italy (Piombino), Romania (Galati) and Macedonia (Skopje), as well as a number of distribution assets in France and Italy.
The Commission considers that "the remedy is sufficient to reduce the market power that ArcelorMittal allegedly obtained, taking into account the fact that in Italy and Southern Europe the competitive pressure exerted by imports is particularly strong for basic products in hot-rolled steel heat".
Among the commitments undertaken by ArcelorMittal to obtain the go-ahead from the European Antitrust for the acquisition of Ilva, the group proposed to eliminate the Marcecaglia group (a significant Italian competitor in the sector of galvanized carbon steel flat products) from the consortium of purchase, "undertaking also not to purchase shares in the Marcecaglia group as part of the operation". The Commission explained that "this prevents competition from being further weakened due to the strengthening of the structural links between the three companies".
According to EU Antitrust Commissioner Margrethe Vestager, “today's decision ensures that ArcelorMittal's takeover of Ilva – which will create by far Europe's largest steel producer – does not result in an increase of steel prices, to the detriment of European industries, the millions of people who work there and consumers. The sale of Ilva's assets to ArcelorMittal should also contribute to accelerating the urgent environmental remediation measures in the Taranto area. To protect the health of the inhabitants of Taranto, it is appropriate that these essential remediation operations continue without delay".
During the in-depth investigation conducted by the European Antitrust on the ArcelorMittal-Ilva operation, the community services examined more than 800 documents.
