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Aurubis agreed in May 2019 to buy Metallo as part of an
acquisition-led expansion into other metals. Metallo processes
about 220,000 tonnes of scrap and recycling materials a year at
its Beerse plant in Belgium and another 95,000 tonnes its plant
in Berango, Spain.
Some of Metallo's assets in Spain and Belgium are likely to be
divested as part of concessions offered in February to address
the European Commission's concerns about the deal, one of the
people said. It is not clear if EU competition enforcers
accepted the offer in its entirety or in a revised form.
Aurubis said it "did not offer any Metallo assets or any Aurubis
assets".
"We still believe that the merger should be cleared
unconditionally. Due to the extension we expect the final
decision early May," the company said.
Aurubis shares were up 2.3% in mid-session.
The Commission, which is scheduled to decide on the deal by May
7, declined to comment.
The European Union competition enforcer opened a full-scale
investigation into the deal in November, saying the merged
entity could hold a dominant position in copper scrap with
increased purchasing power to negotiate lower prices for the
copper scrap it buys.
Another concern centred on Aurubis' market power in the
downstream markets for copper cathodes and wire rods.
Before the Metallo deal, the Commission in early 2019 blocked
Aurubis' proposed sale of its flat-rolled products division to
German copper products producer Wieland, arguing the deal could
lead to higher prices.
(Reporting by Foo Yun Chee; Additional reporting by Michael
Hogan in Hamburg; Editing by Susan Fenton and Edmund Blair)
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