Antitrust Law Daily Wrap Up, ACQUISITIONS & MERGERS NEWS: EC approves joint ventures of ArecelorMittal and CLN, Styrolution and Braskem, (Mar 23, 2015)

By Linda O’Brien, J.D., LL.M.

The European Commission (EC) has cleared under the European Union (EU) merger regulation the creation of a joint venture between ArcelorMittal's subsidiary AMDS Italia and CLN Group, both of Italy, the EC announced today. The transaction was examined under the normal merger review procedure.

ArcelorMittal and CLN plan to combine their steel service centers activities in Italy. Steel service centers are one of the channels for the distribution of steel products as they purchase finished steel products from mills which are then cut to meet customer requirements. ArcelorMittal is the world's largest steel producer whereas CLN produces automotive components. The Commission concluded that the proposed transaction would not significantly reduce competition, notably because of the joint venture's limited market share and the already existing supply links between ArcelorMittal and CLN.

Styrolution-Braskem joint venture. The EC also announced today that it has approved under the EU merger regulation the creation of a joint venture by Styrolution Group GmbH of Germany and Braskem S.A. of Brazil. The transaction was examined under the simplified merger review procedure.

Styrolution is a worldwide producer of thermoplastic resins for use across a range of industries. Braskem operates several industrial sites in the chemical and petrochemical sector in Brazil, the U.S., and Germany. The joint venture will produce certain thermoplastic resins in Brazil and sell them in Brazil and other South American countries. The Commission concluded that the proposed acquisition would not raise competition concerns in particular because the joint venture will have no activity in the European Economic Area.

Companies: ArcelorMittal S.A.; CLN Group; Styrolution Group GmbH; Braskem S.A.

News: AcquisitionsMergers Antitrust