The European Commission has approved, under the EU Merger Regulation, the acquisition of sole control over ArcelorMittal Tubular Products Iași (AMTP Iași) by Metinvest B.V. of the Netherlands, part of the Ukrainian steel and mining group owned by Rinat Akhmetov, New Voice of Ukraine reported last week. Metinvest has also submitted an offer for the takeover of the Liberty Galați steel plant, Romania’s largest steel producer.

The deal concerns the production of small welded carbon steel pipes and was assessed under the Commission’s simplified merger procedure. Brussels concluded that the transaction does not raise competition concerns due to the limited combined market share of the companies involved.

ArcelorMittal Tubular Products Iași is a relatively small producer of welded pipes and hollow sections. For Metinvest, which previously operated significant welded pipe capacity at the now-destroyed Ilyich Iron and Steel Works in Mariupol, the Romanian asset provides an opportunity to rebuild and extend its value chain into finished tubular products inside the EU.

Metinvest already owns several rolling mills in the EU, including Promet Steel in Bulgaria, Trametal and Ferriera Valsider in Italy, and Spartan UK in Britain. Earlier this year, the group launched a new steel mill project in Piombino, Italy, in partnership with engineering firm Danieli.

According to NV Business, the acquisition of AMTP Iași may represent the first stage of a broader expansion strategy in Romania, where Metinvest is also seeking to acquire the Liberty Galați plant.

iulian@romania-insider.com

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