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Aurubis could offload flat rolled products unit
Posted on Thursday, 07 February 2019 13:26
German copper producer Aurubis could decide to sell its flat rolled products business, according to Reuters.
The news provider cited a company spokeswoman as saying that the firm will be on the lookout for a buyer after the European Commission (EC) blocked a planned sale to Ulm-headquartered peer Wieland.
The latter agreed to take over the unit for an undisclosed consideration in April of last year.
However, in October, Aurubis announced that the planned deal was likely to collapse as concessions made by the company to the EC were not sufficient and more were likely to be requested.
This has now transpired, with the regulator saying it has serious concerns that the transaction would reduce competition and increase prices for rolled copper products used by European manufacturers and blocking it accordingly.
Commenting on the possibility of a new deal, Aurubis’ spokeswoman said the company is currently looking for a strategic option which will see the sector thrive on a long-term basis.
No prospective buyers have been named at this stage and it is not clear when, or if, a deal is likely to take place.
Aurubis describes itself as a leading global provider of non-ferrous metals, while it claims its flat rolled products business makes the world’s largest copper coils within the tightest tolerances.
The company posted operating revenue of EUR 11.69 billion in fiscal 2016/2017, up from EUR 11.04 billion over the preceding 12 months.
According to Zephyr, the M&A database published by Bureau van Dijk, there were 155 deals worth a combined USD 15.57 billion targeting nonferrous metal production and processing companies announced worldwide in 2018.
More than a third of total value for the year was attributable to a single deal as Inner Mongolia Baotou Steel Union agreed to inject USD 6.17 billion into wholly-owned subsidiary Inner Mongolia Baogang Metal Manufacturing in October.
© Zephus Ltd