March 10, 2008 / 2:35 PM / 12 years ago

EU approves ArcelorMittal's buy of Galvex

BRUSSELS, March 10 (Reuters) - ArcelorMittal ISPA.ASMTP.PA, the world’s largest steelmaker, won permission from the European Commission on Monday to buy Galvex, an Estonian steel galvanising line.

The proposed merger would create an overlap in the market for galvanised strip and coils, where both ArcelorMittal and Galvex are active, the Commission, top competition regulator of the 27-country European Union, said in a statement.

“However, the Commission’s investigation found that the operation would not give rise to competition concerns in this market, as Galvex’s share in the EEA (European Economic Area) market is very low (0.5 percent) and a number of other significant competitors are active on this market,” it said.

The EEA comprises the European Union members and three other European countries.

“The transaction is unlikely to result in supply problems for competitors of the merged entity, particularly as Galvex is a very small player both as a consumer of cold rolled steel and as a producer of galvanised strip and coils,” the statement said.

No financial details were disclosed when ArcelorMittal announced the deal in November last year. (Reporting by David Lawsky/Dale Hudson)

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