Press Release: Mergers: Commission approves proposed acquisition of steel and vanadium producer Highveld by steel company Evraz, subject to conditions

The European Commission has cleared under the EU Merger Regulation, subject to conditions, the proposed acquisition of the South African steel and vanadium producer Highveld by the steel company Evraz, incorporated in Luxembourg and primarily active in Russia. Vanadium is a metal primarily used in the production of alloys (e.g. steel alloys used in axles, crankshafts, gears, and other critical components; mixed with aluminium in titanium alloys used in jet engines and high-speed airframes) plus rust resistant and high speed tool steels and in specialty stainless steel for use in surgical instruments and tools. The Commission found that the proposed transaction as initially notified would give rise to competition concerns at all levels of the vanadium value chain. However, Evraz has offered to divest an equity interest or a proportion of Highveld's large iron and vanadium mine in Mapoch, South Africa, together with Highveld's vanadium oxides and vanadium finished products activities, also based in South Africa. The remedies would eliminate the merged entity's ability and incentive to exploit its strong position in vanadium feedstock and remove all overlaps between Evraz and Highveld for vanadium oxides and vanadium finished products. In the light of these commitments, the Commission has concluded that the proposed transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.