The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Arcelor by Mittal Steel subject to conditions as both companies are major steel producers. The Commission has found that the proposed transaction would not give rise to competition concerns in the EEA markets for most steel products, except for heavy section beams, a specific type of long carbon steel product. However, Mittal Steel offered remedies that would remove the concerns identified by the Commission. In the light of the remedies submitted, the Commission has concluded that the transaction would not significantly impede effective competition in the European Economic Area or a significant part of it. The Commission’s investigation has shown that the two companies’ activities are largely complementary, both geographically and from the product range viewpoint. The one exception was the market for heavy section beams, in which the Commission found that the combined Mittal Steel-Arcelor would become the undisputed market leader with a significant share of the total EEA production capacity and limited alternatives for customers. To remove these competition concerns, Mittal Steel has offered to divest two Arcelor heavy and medium section steel mills.
