The operation would create the leading stainless steel producer in Europe and the second worldwide
Major company in the global steel sector. Aperam, the steelmaker spun off from ArcelorMittal, confirmed on Friday that it is studying a merger with its Spanish rival Acerinox, in a deal that would create the leading stainless steel maker in Europe and second in the world.
After hearing about the discussions, the National Securities Market Commission (CNMV) decided to suspend the listing of both companies, which returned to the trading floor two hours later to finally close the session with 5% gains for Aperamy and declines. of 3.12% for Acerinox.
In the statement sent to the supervisor, the secretary of the latter’s board of directors, Luis Gimeno Valledor, explained that “the analysis of the possible operation is at a very early stage and there is currently no agreement on the structure. , perimeter and conditions.
The directors of both companies seem aware that in order to close the deal, multiple factors related to competitive risks must be considered. We must not forget that, for the same reason, Brussels vetoed the merger between the German ThyssenKrupp and the Indian Tata Steel just three years ago. “There is no assurance that the parties will reach an agreement and, if any, under what terms,” Acerinox said in its statement.
“It would be necessary to know the opinion of the competition authorities, as both are leaders in Europe and complement each other in other areas, with Acerinox in the US and Aperam in South America,” said Aránzazu Cortina, an analyst at Bankinter. Remember that last year Aperam bought ELG (a leading company in the recycling of steel scrap), while in 2020 Acerinox acquired VDM, a specialist in high-performance alloys. “We estimate that problems could arise in Europe by reaching a 45% market share, which is more than the 40% limit normally set by the EU, for which they would be forced to reduce their capacity or assets,” the Renta analysts agree.
It should be remembered that the main shareholder of Aperam is the Mittal family (with 39.8%), which in principle would have more power over the resulting group than Corporación Financiera Alba, which owns 18% of Acerinox.
According to calculations by Renta 4 Banco, the joint company would generate a cumulative turnover (estimated for 2022) of approximately 17,000 million euros.
In terms of market capitalization, a giant of about $6.4 billion would emerge, with data at the market’s close on Thursday.
Source: La Verdad
I’m Wayne Wickman, a professional journalist and author for Today Times Live. My specialty is covering global news and current events, offering readers a unique perspective on the world’s most pressing issues. I’m passionate about storytelling and helping people stay informed on the goings-on of our planet.
