Salzgitter AG has received approval from the European Commission to acquire sole control of Huttenwerke Krupp Mannesmann (HKM) under the EU Merger Regulation.
The transaction, which relates mainly to semi-finished carbon steel production, was cleared under the simplified procedure, with the Commission citing no competition concerns due to limited market impact.
The approval follows an agreement reached in February for Salzgitter to acquire the 50pct stake held by Thyssenkrupp Steel Europe. Salzgitter previously held a 30pct share in HKM, while Vallourec, the third shareholder, had approved the transaction.
Under the agreement, slab deliveries from HKM to Thyssenkrupp Steel will end in 2028, earlier than the previously planned 2032.
Following completion, HKM will operate under Salzgitter’s full control, with production expected to be scaled down from around 4.2 mln tons to approximately 2-2.5 mln tons annually.
HKM produces slabs and billets across a wide range of steel grades and is progressing toward lower-carbon steelmaking, with longer-term plans to transition from blast furnace operations to electric arc furnace technology.
Salzgitter is one of Germany’s leading steelmakers, with crude steel capacity of about 6.4 mln tons.