Brussels, Belgium, 17 Feb – The European Commission Monday authorised the acquisition of Portuguese group Cimpor by Brazil’s Companhia Siderúrgica Nacional (CSN), considering that the operation did not affect competition in the European Union.
“The European Commission concluded that this [operation] was not susceptible to significantly affecting effective competition in the European economic area or a substantial part of it,” the European Commission said in a statement.
Given the strong market position of Cimpor in Portugal, the commission also examined whether the fact that the new entity would have a wide range of products in certain markets would make it possible to eliminate competition in any one of them, “having concluded that the operation would have no effects of this kind.”
CSN’s presence in the steel products market in the European economic area “is reduced and the market has an important number of alternative and competing supply source,” according to the commission.
CSN is a large integrated producer of steel, present in Brazil and Latin America and also carries out activities in the logistics mining sectors having launched its cement business in Brazil in 2009.
CSN’s European business mainly consists of the sale of iron ore and steel imported from Brazil.
CSN also has steel manufacturing facilities in Portugal, via its subsidiary Lusosider, where it produces galvanised steel and laminated steel.
Cimpor is an international cement group with operations in Brazil, Egypt, South Africa and China and its European business is limited to Spain and Portugal.
Its core activity is production and sale of cement, although it also produces cement derivatives such as concrete and mortar. (macauhub)