Commission européenne, DG COMP MERGER REGISTRY, 1049 Bruxelles, BELGIQUE  
Europese Commissie, DG COMP MERGER REGISTRY, 1049 Brussel,  BELGIË  
 
Tel: +32 229 -91111. Fax: +32 229 -64301. E -mail: COMP -MERGER -REGISTRY@ec.europa.eu .  EUROPEAN COMMISSION  
Brussels, 25.11.2021  
C(2021 ) 8700 final  
PUBLIC VERSION  
 
Aperam S.A.  
12 C rue Guillaume Kroll  
1882 Luxembourg  
Luxembourg  
Subject : Case M. 10320  – APERAM / ELG HANIEL  
Commission decision pursuant to Article 6(1)(b) of Council Regulation 
No 139/20041 and Article 57 of the Agreement on the European 
Economic  Area2 
Dear Sir or Madam,  
(1) On 19 October 2021 , the European Commission (“Commission”) received 
notification of a proposed concentration pursuant to Article 4 of the Merger 
Regulation by which Aperam S.A. (“Aperam”, Luxembourg) intends to acquire 
within the meaning of Article 3(1)(b) of the Merger Regulation sole control of ELG 
Haniel GmbH ( “ELG”, Germany), by way of purchase of shares (the “Transaction”). 
Aperam is designated as the “Notifying Party” and together with ELG as the 
“Parties.”  
                                                 
1  OJ L 24, 29.1.2004, p. 1 (the ’Merger Regulation ’). With effect from 1 December 2009,  the Treaty on the 
Functioning of the European Union ( the ‘ TFEU ’) has introduced certain changes, such as the replacement 
of ‘Community ’ by ‘Union ’ and ‘common market ’ by ‘internal market ’. The terminology of the TFEU 
will be used throughout this decision.  
2  OJ L 1, 3.1.1994, p. 3 (the ‘EEA Agreement’).  
In the published version of this decision, 
some information has been omitted 
pursuant to Article 17(2) of Council 
Regulation (EC) No 139/2004 concerning 
non-disclosure of business secrets and 
other  confidential information. The 
omissions are shown thus […] . Where 
possible the information omitted has been 
replaced by ranges of figures or a general 
description.  
 
2 1. THE  PARTIE S  
(2) Aperam is a global player active in the production of stainless steel flat products, 
electr ical and specialty alloys steel, including nickel alloys. Aperam […] the HSBC 
Trust (C.I.) Limited3, whose beneficiaries are members of the Mittal family (“Mittal 
Family Trust”). […].4 The ArcelorMittal group has a wholly -owned subsidiary, 
Industeel, which is also active in stainless steel flat products and nickel alloys. 
Aperam’s stainless  steel plants a re located in Genk and Ch âtelet5 and Industeel’s in 
Charleroi  (all in Belgium)  and Le Creusot (France) . 
(3)  ELG is a global player active in trading, processing and recycling raw materials for 
the stainless steel industry, as well as high performance materials such as superalloys 
and titanium. ELG’s main yards in Europe are located in Rotterdam  (Netherlands), 
Duisb urg and Karlsruhe  (Germany) , Limay  (France)  and San Roque  (Spain) . 
2. THE  CONCE NTRATION  
(4) The concentration consists of the acquisition of sole control by Aperam over ELG 
through the acquisition of shares. The Transaction will be implemented according to 
the t erms of the Share Purchase Agreement signed on 6 May 2021. In light of the 
above, the Transaction constitutes a concentration within the meaning of Article 
3(1)(b) of the Merger Regulation.  
3. UNION  DIME NSION  
(5) The undertakings concerned have a combined aggrega te world -wide turnover of 
more than EUR 5 000 million  (Aperam: EUR […], ELG: EUR […])6. Each of them 
has a  Union -wide turnover in excess of EUR 250 million  (Aperam: EUR […], ELG: 
EUR […]), but they do not achieve more than two -thirds of their aggregate U nion-
wide turnover within one and the same Member State. The notified concentration 
therefore has a U nion dimension.   
4. MARKE T DE FINITION  
4.1. Introduction – metal scrap recycling  
(6) Metal scrap is generated as a waste product, but has become an important raw 
materi al. Together with primary raw materials, it  is used as an input in the 
production of new metal products. It is available at lower prices and carbon footprint 
than primary raw material, while its quality is generally comparable.  
(7) Several steps are necessary  between the collection of metal scrap and its use in new 
metal products, as the example of ELG demonstrates . 
                                                 
3  Form CO, paragraph 23 . 
4  Form CO, paragraph 26.  
5  Genk is also a cold rolling mill. Ch âtelet is a hot rolling mill. Aperam also produces […] stainless steel 
products in its plant Aperam Alloys Imphy in France, which is […] active in the production of nickel alloy 
products.  (Form CO, paragraphs 118 and 119).  
6  Turnover calculated in accordance with Article 5 of the Merger Regulation . 
 
3 (8) In a first step, ELG purchases and receives scrap from numerous local and global 
collectors. In a second step, ELG processes the collected scrap a nd materials. This 
includes, in particular, the examination of the scrap for radiation, any other 
hazardous or harmful elements or hollow bodies, chemical analysis of the scrap, 
changing the size of the scrap, sorting / diluting impurities and finally blen ding the 
processed scrap (mix of materials) to meet the customer’s specifications.  In a third 
step, ELG sells the processed scrap as secondary raw material to customers: in the 
case of stainless steel scrap, to the stainless steel industry, among others to  Aperam.7  
(9) Aperam and its competitors in the stainless steel industry buy the blended stainless 
steel scrap and use it in the production of  stainless steel  products .8 Nickel alloy scrap 
is used by Aperam and its competitors in the production of nickel allo ys. Titanium 
scrap can be  used as an input in nickel alloy  and stainless steel products, used in 
small quantities to increase resistance to so -called intergranular corrosion or increase 
the strength of the final product.9  
(10) ELG also collects other types of metal scrap, […]. Given that ELG’s focus is on 
stainless steel scrap, nickel alloy scrap and titanium scrap, and Aperam […] buys 
stainless steel scrap and nickel alloy scrap, this Decision will focus on these three 
types of  scrap.  
4.2. Market for the processing and blending of metal scrap  
4.2.1.  Product market  
4.2.1.1.  The Commission’s previous practice  
(11) In previous decisions, the Commission considered whether, within the overall 
market for trade in metal scrap, the market segment for collecting  and processing 
constitutes a separate market or whether collection, processing and trade of 
processed metal scrap belong to one single market, but ultimately left the question 
open.10 The Commission has identified a market for trade in metal scrap, which i t 
has divided into separate market s for trade in : (i) ferrous scrap and in (ii) non -ferrous 
scrap.11 The Commission also considered, but left open, potential sub -segments of 
non-ferrous scrap for trade in : (a) aluminium scrap, (b) copper scrap and (c) zinc 
scrap.12 
                                                 
7  Form CO, paragraph 72.  
8  In the EEA, stainless steel is produced via the electric arc fu rnace route (“EAF”). The EAF route relies on 
stainless steel scrap as the main input for the production of stainless steel. Stainless steel can also be made 
through primary materials (iron ore, coke and limestone) through the blast furnace/basic oxygen fur nace 
(“BOF”) route. However, this method is not used in the EEA, nor in countries such as the United States, 
Korea, Japan etc., due to the very negative environmental impact. See Form CO, paragraphs 539 – 541 
and non -confidential minutes of a call with a c ustomer, 26 July 2021. Carbon steel has a different 
production method. It is most commonly produced via the BOF route and is produced primarily through 
primary materials.  
9  Form CO, paragraph 261.  
10 COMP/M.5714 – Scholz/Scholz Austria/Kovosrot, paragraph  9, COMP/M.4495 –Alfa 
ACCIAI/Cronimet/Remondis/  TSR Group, paragraphs 16  et seq.  
11  See e.g. COMP/M.5714 –Scholz/ Scholz Austria/Kovosrot,  paragraph 8, COMP/M.4469 –
Scholz/Voestalpine/Scholz  Austria, paragraph 10,  COMP/ECSC.1358 –Scholz/ Alba/Elsa.  
12  See e.g. COMP/M.5714 –Scholz/Scholz Austria/Kovosrot, paragraph 8; COMP/M.4469 –
Scholz/Voestalpine/Scholz  Austria, paragraph 13.  
 
4 4.2.1.2.  The Notifying Party’s view  
(12) The Notifying Party  agree s with the Commission’s practice to distinguish between 
different types of metal scrap. As for the different activities, they consider that 
collection, processing and trading all form part of the same product market, arguing 
that all major players collect a nd process scrap metal in order to trade scrap metal.13 
The Notifying Party also submit s that no further sub -segmentation by end -use of 
grade of scrap is warranted, even though […] make a distinction between the 
stainless steel scrap grades 304 and 316.14 The Notifying Party argue s that most 
relevant suppliers offer and most relevant consumers source stainless steel grades 
304 (used for more “standard” applications e.g. household appliances ), and 316 
(used for more industrial applications such as pipes in fac tories due to its higher  
resistance against corrosion).15 
4.2.1.3.  The Commission’s assessment  
(13) In line with the Commission’s previous practice, t he results of the market 
investigation  indicate that different types of scra p constitute different markets . The 
majority of respondents  replied in the market investigation that stainless steel scrap 
and other types of metal scrap are not interchangeable  in stainless steel production .16 
As several  respondents explained, primary raw materials and stainless steel scrap  can 
be exchanged to some extent  from a technical perspective , but prices and 
environmental impact are not remotely comparable  for stainless ste el production in 
the EEA .17 One customer explained that in the EEA and other countries: “ Stainless 
steel scrap is  the main raw material in Europe and the US and other developed 
economies .” However, in other countries, “ such as China, Indonesia, they use other 
raw materials(nickel pig iron etc.) and they use nickel ore and other alloys (which 
are in principle more exp ensive) and they also have mining capacities. The reason 
for this may be that stainless steel scrap is circular (it is recycled and reused); you 
only have large enough supplies of this in more developed countries….. ” The same 
customer explained the importa nce of stainless steel scrap for the stainless steel 
industry: “ In Europe and the US, with the importance of recycling and the need for 
sustainability, everyone needs to buy as much stainless scrap as possible. Without 
scrap there would not be enough capac ity to manufacture stainless steel .”18 
(14) As for the supply side, scrap is generated as a waste product, not “produced” 
according to demand in the market. Therefore, the quantities of different types of 
                                                 
13  Form CO, paragraph 126 . 
14  The basic difference between these stainless steel scrap grades is their composition. The stainless steel 
scrap grade 304 contains typically approx. 7.5% of nickel, 15 -17% of chrome and approx. 74% of iron.  
The stainless steel scrap grade 316 contains typically approx. 10% of nickel, 15 -17% of chrome, approx. 
70% of i ron and – this is the additional ingredient – approx. 2% of molybdenum. Given the content of 
approx. 2% of molybdenum and increased content of nickel, the stainless steel scrap grade 316 is typically 
more expensive than the stainless steel grade 304. The s tainless steel scrap grade 316 is typically used to 
produce stainless steel products of the same grade, i.e. 316 or similar grades. The molybdenum content 
results in increased corrosion resistance. Common applications of 316 stainless steel products includ e 
chemical processing and storage equipment, refinery equipment, medical devices and marine 
environments.  
15  Form CO, paragraph 132 . 
16  Replies to question 4 and 7 of Questionnaire 2 to stainless steel scrap customers. Replies to question 5 of 
Questionnair e 1 to stainless steel scrap suppliers.  
17  Reply to question 4 of Questionnaire 2 to stainless steel scrap customers.  
18  Non-confidential minutes of a call with a customer, 26 July 2021.  
 
5 scrap cannot change as a result of increase in demand. Suppliers of stainless and 
nickel alloy scrap are also different, which indicates  that it is common in the industry 
to specialise on certain types of scrap.  Given the lack of both demand - and supply -
side substitutability, stainless steel scrap constitutes a separate market.   
(15) The same reasoning applies for nickel alloy scrap.  A majority of respondents replied 
that nickel alloy scrap is not substitutable with any other types of metal scrap.19 As a 
customer explained: “ Substitution with primary raw materials is t echnically 
possible, but would incur a non sustainable cost disadvantage. Substitution with 
other types of metal scrap is technically impossible, since the chemical contents 
would not be appropriate for the intended production ”.20 This indicates that nickel  
alloy scrap also constitutes a separate market.  
(16) Internal documents, pre -notification calls as well as the description of the scrap 
industry in the Form CO however also point to a further segmentation by activity , 
notably collection , processing (which incl udes sorting and crushing of scrap ) and 
blending.21 In this blending process different scrap types of different materials and 
alloys are mixed in a controlled process according to the customer’s specifications 
regarding chemical composition and physical sha pe.22 However, a majority of 
respondents in the market investigation suggest that the same  companies are active 
in all mentioned stages .23 In the words of a stainless steel scrap supplier, “ a real 
difference only exist in regards to smaller competitors, which focus on the trading of 
scrap because they are too small to process the scrap .”24 In addition, the market 
investigation also found that a  further sub -segment ation of  the product market, such 
as by grades, e. g. 304 and 316 (as well as other relevant gr ades) for stainless steel 
scrap , is not warranted .25 
(17) As regards sales to customers of stainless steel scrap, the market investigation 
showed that only suppliers able to supply a certain quantity sell directly to customers  
i.e. the stainless steel producers26, whereas smaller companies are active in collection 
and sell the scrap to larger suppliers .27 Almost all of the purchases of stainless steel 
scrap made by stainless steel producers concerns blended stainless steel scrap.28 
                                                 
19  Replies to question 5 of Questionnaire 3 to nickel alloy scrap sup pliers. Replies to question 4 of 
Questionnaire 4 to nickel alloy scrap customers.  
20  Reply to question 4 of Questionnaire 4 to nickel alloy scrap customers.  
21  see e.g. Form CO, Annex 06.04, page 4; Annex 07.10, page 6 […]; Form CO, paragraph 75; non -
confi dential minutes of a call with a competitor,9 July 2021, paragraph 10.  
22  (Form CO, paragraph 74. ) Blending is the last step before which the required mix of scrap is sold to 
stainless steel or nickel alloy producers.  
23  Replies to question 7 of Questionnaire 2 to stainless steel scrap customers. Replies to question 6, 7 and 8 
of Questionnaire 1 to stainless steel scrap suppliers.  
24  Non-confidential minutes of call with a competitor, 23 July 2021, paragraph 4.  
25  Replies to question 4 of Question naire 2 to stainless steel scrap customers. Replies to question 9 of 
Questionnaire 1 to stainless steel scrap suppliers. Replies to question 9 of Questionnaire 3 to nickel alloy 
scrap suppliers. Replies to question  8 of Questionnaire 4 to nickel alloy scra p customers.  
26  Replies to question 6 of Questionnaire 2 to stainless steel scrap customers.  
27  By way of example, ELG, as a larger supplier, not only collects scrap but also purchases from numerous 
companies active in collection, before then processing an d blending scrap for sale to its customers. See 
paragraph (8).  
28  Replies to question 7 of Questionnaire 2 to stainless steel scrap customers. Replies to question 8 of 
Questionnaire 1 to stainless steel scrap suppliers.  
 
6 (18) The evidence in the Commission’s f ile has not provided any indication that would 
suggest that applying by analogy the Commission’s decisional practice on titanium 
scrap would not be appropriate in the present case. For the purposes of this Decision, 
the Commission will therefore analyse th e market for the collection , processing  and 
blending  of titanium scrap.  
(19) With a view to the above, the Commission will analyse the effects of the Transaction 
on the basis of markets for the collection, processing and blending of stainless steel 
scrap, the c ollection, processing and blending of nickel alloy scrap and the 
collection, processing and blending of titanium  scrap .  
4.2.2.   Geographic market  
4.2.2.1.  The Commission’s previous practice  
(20) In its previous decisions , the Commission found the market for trade in metal scrap 
to be at least EEA -wide.29 As regards the geographic scope of the market for 
collecting and processing of metal scrap, the Commission indicated that the 
geographic dimension is smaller than that of the trade market. It left open whether 
the markets ar e national or regional with respect to collection activities  where 
markets might be determined according to the catchment radius of each facility 
(possible radius of approx. 200 km).30 
4.2.2.2.  The Notifying Party’s view  
(21) The Notifying Party submit s that the geograph ic market for collection, processing 
and trading is at least EEA -wide: especially stainless steel and nickel alloy scrap is 
sold and sourced at least on an EEA -wide basis while properties, market conditions 
and prices are similar across the EEA.  This kind of scrap is, in general, a more 
expensive  scrap product  compared to other metal scrap types . Thus, transport costs 
play a smaller role compared to other scrap material. Moreover, large exports to 
India and Taiwan show in the Notifying Party’s opinion that distances are no t an 
obstacle for the collection, processing and trade of metal scrap.31 
4.2.2.3.  The Commission’s assessment  
(22) In line with its previous practice, the Commission considers that collection of 
different metal scraps takes place on a narrower scale than  the supply of this scrap to 
customers. A slight majority of stainless steel scrap suppliers active in the collection 
of stainless steel scrap replied that they usually travel between 100  and 500km from 
their facilities to collect this scrap.32  
(23) Processing and sale of blended stainless steel scrap can take place over l onger 
distances, with the significant majority of suppliers processing and selling blended 
                                                 
29  See e.g.  COMP/M.4495  -Alfa Ac ciai/Cronimet/Remondis/TSR Group, paragraph 27 et seq. 
COMP/M.5714 –Scholz/Scholz  Austria/Kovosrot,  paragraph 11, COMP/M.4781 –Norddeutsche  
Affinerie/Cumerio,  paragraphs  25 et seq., COMP/M.6541 –Glencore/Xstrata, paragraphs  246 et seq.,  
COMP/M.4469 –Scholz/Voestalpine/Scholz  Austria, paragraphs 14  and 15.  
30  COMP/M.5714 –Scholz/Scholz Austria/Kovosrot, paragraph 11, COMP/M.4469 –
Scholz/Voestalpine/Scholz  Austria, paragraph 15; COMP/ECSC.1358 –Scholz/Alba/Elsa.  
31  Form CO, paragraphs 148 and 151.  
32  Replies to question 11 of Questionnaire 1 to stainless steel scrap suppliers.  
 
7 stainless steel scrap at distances greater than 300km, with some supplying stainless 
steel scrap at di stances greater than 1200km.33 […], the Parties’ data also shows that 
[…]% of sales from ELG’s yard occur within a catchment area of approximately 
[…] km.34 A minority of suppliers are active in smaller catchment areas, ranging 
from only 50 km to 50 -300 km.35  
(24) Market participants stressed that the mode of transport (i.e. by truck, trail, barge, or 
ship) plays a key role for costs36 and hence the radius in which stainless steel scrap is 
sourced. A majority of customers indicated that prices of stainless steel sc rap differ 
according to the location.37 In the words of a supplier, “ prices are reliant upon 
freight costs, no matter if  [stainless steel scrap] is being purchased or sold .”38 Both 
suppliers and customers of stainless steel scrap pointed to location as a key  factor 
determining prices.39 The market investigation indicates that the main driver for the 
geographic area over which  stainless steel scrap  suppliers are active  is the location of 
the customers. As noted by one supplier, “ we do have all kind of distances  
depending on where our suppliers and customers are located .”40 These distances can 
be short, depending on the proximity of the scrap yard to the steel mill, or very much 
further. As noted by one stainless steel scrap supplier, “ the routes to Outokumpu 
(Tornio) and Acerinox (Algeciras) are really long! ”.41 For this reason, and due to the 
important role played by transport costs in the delivery of stainless steel scrap , one 
suppliers notes : “the main rationale behind opening a new yard always is: ‘go where  
the scrap or the customer is ’.”42 As noted above at paragraph  (23), some smaller 
stainless steel scrap suppliers are only active at distances of less  than 50km or 
300km. One such supplier explained that, “ our customers are situated very close to 
our facilities, less than 50km in the most of cases .”43  
(25) In summary, th e results of the market investigation suggest that smaller suppliers 
generally supply at shorter distances44 whereas the large r suppliers are able to supply  
blended stainless steel scrap  over much longer distances of more than 2000km  
respectively .45 The Commission therefore notes  that the catchment area s at which 
some scrap suppliers operate is  rather high, while noting also that many of the 
smaller stainless steel scrap suppliers are only active in certain regions.  
(26) For the purposes of the assessment of the vertical link between stainless steel scrap 
and the production of stainless steel produc ts, the Commission considers that the 
relevant level of the supply chain at which to conduct the assessment is the 
                                                 
33  Replies to questions 12 and 13  of Questionnaire 1 to stainless steel scrap suppliers.  
34  Annex 17, Annex 18. Form CO and Annex 1, Annex 2, reply to RFI 9.  
35 Replies to question 13 of Questionnaire 1 to stainless steel scrap competitors . 
36  Replies to question 12 of Questionnaire 2 to stainless steel scrap customers. Replies to question 14 of 
Questionnaire 1 to stainless steel scrap suppliers.  
37  Replies to question 14 of Questionnaire 2 to stainless steel scrap customers.   
38  Replies to question 16 of Questionnaire 1 to stainless steel scrap suppliers.  
39  Replies to question 15 of Questionnaire 2 to stainless steel scrap customers. Replies to question 11 of 
Questionnaire 1 to stainless steel scrap suppliers.  
40  Reply to question 13 of Questionnaire 1 to stainless steel scrap suppliers.  
41  Reply to question 13 of Questionnaire 1 to stainless steel scrap suppliers.  
42  Non-confidential minutes of  a call with a stainless steel scrap supplier, 23 July 2021.  
43  Reply to question 13 of Questionnaire 1 to stainless steel scrap suppliers . 
44  Replies to question s 13 and 14 of Questionnaire 1 to stainless steel scrap suppliers.  
45  Replies to questions 1 3 and 14 of Questionnaire 1 to stainless steel scrap suppliers.  
 
8 processing and supply of the blended stainless steel scrap to the customer. Therefore, 
the geographic market for the processing and blending  of stainless steel scrap is at 
most EEA -wide. The fact that smaller  stainless steel scrap suppliers  are not active 
throughout the EEA will be taken into account in the competitive assessment.   
(27) As regards  the supply of nickel alloy scrap  to customers , the result s of the market 
investigation point to an EEA -wide market. Transportation costs also play a role, 
although  they are less relevant  than for stainless steel scrap , as nickel alloy scrap  has 
a higher value .46  
(28) The evidence in the Commission’s file has not provided any indication that would 
suggest that applying by analogy the Commission’s decisional practice on titanium 
scrap would not be appropriate in the present case. In comparison to stainless steel 
scrap , transport costs play less of a role  due to the high value  of titanium scrap .47 
(29) The Commission will therefore analyse the effects of the Transaction on the basis of 
an EEA -wide market for the market s for the processing and blending of stainless 
steel scrap , nickel alloy  scrap  and titanium scrap , while taking into account in the 
competitive assessment that as far as stainless steel scrap is concerned, not all market 
participants are active on an EEA -wide level .  
4.3. Market s for stainless steel products and nickel a lloy products  
4.3.1.   Product market  
4.3.1.1.  The Commission’s previous practice  
(30) The Commission has considered in previous cases that the distribution of steel 
products forms a separate market from the production and wholesale – thus, direct 
(ex-mills) sales – of steel products.48 Based on chemical composition, the 
Commission has distinguished between : (i) carbon steel, (ii) stainless steel, and (iii) 
speciality steels  and (iv) electrical steel .49 As to the physical shape, the Commission 
has defined separate product market s for long steel products and flat products.50 
Within flat stainless steel products, the Commission has further distinguished 
between : (i) hot rolled and (ii) cold rolled steels.51 As regards hot -rolled products, a 
potential segmentation between hot black ba nd and hot white band steels was left 
open.52 Within long steel products, the Commission has left open whether to further 
                                                 
46  Replies to question 14.2 and 15  of Questionnaire 4 to nickel alloy scrap customers.  See e.g. reply to 
question 15 of Questionnaire 4  to nickel alloy scrap customers : “Higher transport cost s due to longer 
transport routes increase our purchase prices if our competition is closer to the supplier. Proximity to the 
supplier therefore has a competitive advantage. But transport costs are not the decisive element. ” 
47  Non-confidential minutes of a call with a competitor, 2 September  2021.  
48  See Case M.7839 - Outokumpu / Hernandez Edelstahl, para graph  25; M.7138 – ThyssenKrupp / Acciai 
Sepciali Terni/ Outokumpu VDM, paragraph 10 et seq.  
49  See Case M.8159 - ArcelorMitta l / Cellino / JV, paragraph 13; Case M.7155 – SSAB / RAUTARUUKKI, 
paragraph 22; Case ECSC 1351 Usinor /Arbed/Aceralia, paragraph 13.  
50  See Case M.7155 – SSAB / RAUTARUUKKI, paragraph 23; COMP/M.7138 – Thyssenkrupp / Acciai 
Speciali Terni / Outukumpu VDM, paragraph. 7.  
51  See COMP/M.7138 – Thyssenkrupp / Acciai Speciali Terni / Outukumpu VDM, paragraph 7; Case 
M.8159 - ArcelorMittal / Cellino / JV, paragraph 15 .  
52  COMP/M.7138 – Thyssenkrupp / Acciai Speciali Terni / Outukumpu VDM, paragraph 8; Case 
COMP/M .6471 – Outokumpu/Inoxum, paragraph 136.  
 
9 distinguish between : (i) ingots and billets, (ii) wire rod, (iii) hot rolled and forged 
bars, (iv) bright bars and (v) drawn wire.53 Moreover, the Commission has defined a 
separate market  for stainless steel quarto plates54 and has defined a separate market 
for stainless steel precision strip55.  
(31) The Commission has considered a separate product market for production and sale 
of nickel alloys . Based on the shape, the Commission considered a further 
segmentation in relation to product categories such as strips, plates, wires and bars.56  
4.3.1.2.  The Notifying Party’s view  
(32) The Notifying Party  submits that there is no need to draw conclusions on the exact  
scope of the relevant product markets, as no competition concerns arise irrespective 
the market definition.57  
4.3.1.3.  The Commission’s assessment  
(33) The evidence in the Commission’s file has not provided any indication that would 
suggest that applying the Commission’s decisional practice on stainless steel 
products and nickel alloy products would not be appropriate in the present case. For 
the purposes of this Decision, the Commission will analyse the market s for: (i) 
production and wholesale of stainless s teel flat products as well as for (ii) nickel 
alloy products .  
(34) The stainless steel markets where Aperam is active are (i) production and wholesale 
of stainless steel flat hot rolled black band products, (ii) production and wholesale of 
stainless steel flat  hot rolled white band products, (iii) production and wholesale of 
stainless steel flat cold rolled products and (iv) production and wholesale of stainless 
steel welded tubes.  
(35) The nickel alloy markets where Aperam is active are (i) production and sale of 
nickel alloy semis, (ii) production and sale of nickel alloy bars, (iii) production and 
sale of nickel alloy wire, (iv) production and sale of nickel alloy wire rod, (v) 
production and sale of nickel alloy strip and (vi) production and sale of nickel alloy  
“plates and sheets”.  
(36) The Commission  considers that for the purposes of the analysis of vertical links 
between Aperam and ELG,  these are the relevant do wnstream markets.   
4.3.2.  Geographic market  
4.3.2.1.  The Commission’s previous practice  
(37) In previous decisions, the Commi ssion has considered that the relevant geographic 
market s for production and wholesale of stainless steel and nickel alloys  is at least 
EEA-wide in scope.58  
                                                 
53  See Case M.7273 - GERDAU EUROPE / ASCOMETAL, paragraph 24; Case M.6962 - RENOVA 
INDUSTRIES / SCHMOLZ+BICKENBACH, paragraph 16.  
54  Case M.5211 - Outokumpu / Sogepar, paragraph 11; Case M.4137 - Mittal /Arcelor, pa ragraph 21 et seq.  
55  Case M.6471 – Outokumpu/ INOXUM, paragraph 201 et seq.  
56  See Case M.1080 - Thyssen / Krupp, paragraph 17. 
57  Form CO, paragraph 147.  
 
10 4.3.2.2.  The Notifying Party’s view  
(38) The Parties submit that the market for all types of stainless steel prod ucts is at least 
EEA-wide.59 For nickel alloys, they argue that no need arises to draw conclusions on 
the exact scope of the relevant product markets, as no competition concerns arise 
irrespective the market definition.60  
4.3.2.3.  The Commission’s assessment  
(39) The evidence in  the Commission’s  file has not provided  any indication  that would 
suggest that applying the Commission’s decisional practice on stainless steel 
products and nickel alloy products would not be appropriate in the present case.  For 
the p urposes of this Decision, the Commission will analyse the market s for 
production and wholesale of stainless steel flat products and for nickel alloy products  
at EEA -wide level .61 
5. COMPE TITIVE ASSE SSME N T OF VE RTICAL NON -COORDINATE D E FFE CTS  
(40) The Transaction gives rise to vertical  links between the upstream  supply of stain less 
steel scrap and the downstream production of stainless steel and in the upstream 
supply of nickel alloy scrap and the downstream production of nickel alloys  and 
these links are assessed in Sections 5.2 and 5.3 below . Although these links do not 
give rise to affected markets based on the market shares provided by the Notifying 
Party, as further outlined in the competitive assessment below, the Commission also 
considers that the market shares do not fully represent the respective importance of 
the Parties in the respective upstream and downstream markets.   
(41) The Transaction also gives rise to a vertically affected market  in collection and 
processing of titanium scrap (an input for  nickel alloy products) in the EEA , assesse d 
in Section 5.4 below.62 
5.1. Legal framework  
(42) According to the Commission’s Guidelines on the assessment of non -horizontal 
mergers under the Council Regul ation on the control of concentrations between 
undertakings (“Non -horizontal Merger Guidelines”), foreclosure effects may occur 
where actual or potential rivals' access to supplies or markets is hampered or 
eliminated as a result of the merger, thereby red ucing these companies' ability and/or 
incentive to compete.63 
                                                                                                                                                      
58  See Case M.7839 - Outokumpu / Hernandez Edelstahl, para graphs  30 et seq .; Case M.1080 - Thyssen /  
Krupp, para graph  18. 
59  Form CO, paragraph 201.  
60  Form CO, paragraph 206.  
61  The Transaction also gives rise to  a negligible horizontal overlap between the Parties’ activities in relation 
to the distribution of stainless  steel sheets and plates in Germany.  However, as the Parties’  combined share 
remain s below 20%  (Form CO, footnote 5), this market will not be further discussed in this Decision.  
62  The Parties’ activities marginally overlap in the upstream markets for collection and processing of 
stainless steel and in titanium scrap via Aperam’s ownership of a scrapyard in Belgium (formerly 
Cronimet Belgium but now called Aperam/ASB Recycling.[…]. (Form CO, paragraph 269).  
63  Non-horizontal Merger Guidelines, paragraph 18.  
 
11 (43) In assessing the likelihood of an anticompetitive input foreclosure scenario, the 
Commission examines, first, whether the merged entity would have, post -merger, the 
ability to substantially forec lose access to inputs, second, whether it would have the 
incentive to do so, and third, whether a foreclosure strategy would have a significant 
detrimental effect on competition downstream.64 
(44) In assessing the likelihood of an anticompetitive customer forecl osure scenario, the 
Commission examines, first, whether the merged entity would have the ability to 
foreclose access to downstream markets by reducing its purchases from its upstream 
rivals, second, whether it would have the incentive to reduce its purchas es upstream, 
and third, whether a foreclosure strategy would have a significant detrimental effect 
on consumers in the downstream market.65 
(45) Finally, vertical mergers may also give rise to the disclosure of commercially 
sensitive information regarding the up stream or downstream activities of rivals, 
where the merged entity may gain access to this information. For example, by 
becoming a supplier of a downstream competitor, a company may obtain critical 
information allowing it to prices less aggressively in the  downstream market. It may 
also put competitors at a competitive disadvantage, thereby dissuading them from 
entering or expanding in the market.66 
5.2. Stainless steel scrap  
5.2.1.  Market shares  
5.2.1.1.  Upstream market – supply of stainless steel scrap  
(46) The market for the supply of stainless steel scrap in the EEA is mostly served by 
three major players who are active across the EEA: Cronimet  ([20-30]%), ELG  ([10-
20]%) and Oryx  ([10-20]%). The remainder of the market is fragmented among a 
small number of more local players (e.g. Reinoxmetal in Spain, Derichebourg in 
France). This is evident from the market shares set out in Table 1 below.67  
                                                 
64  Non-horizontal Merger  Guidelines, paragraph 32.  
65  Non-horizontal Merger Guidelines, paragraph 59.  
66  Non-Horizontal Merger Guidelines, paragraph 78 . 
67  The market shares set out in Table exclude so -called “internal use” stainless steel scrap as this has not 
been purchased fro m stainless steel scrap suppliers. This is stainless steel scrap that is produced by 
stainless steel producers as a by -product of their own production and then recycled again into their own 
production. See footnote 85 Form CO.  
 
12 Table 1: Processing and blending  of stainless steel scrap for the stainless steel industry 
in the EEA in terms of volume  
ELG / 
Competitors  2020 2019 2018 
Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  
Cronimet 
Group  […] [20-30]%  […] [20-30]%  […] [20-30]%  
ELG  […] [10-20]%  […] [10-20]%  […] [10-20]%  
Oryx  […] [10-20]%  […] [10-20]%  […] [10-20]%  
Paul Jost  […] [0-5]% […] [0-5]% […] [0-5]% 
Innovative 
Metal 
Recycling  […] [0-5]% […] [0-5]% […] [0-5]% 
Scholz  […] [0-5]% […] [0-5]% […] [0-5]% 
Stena 
Recycling  […] [0-5]% […] [0-5]% […] [0-5]% 
Derichebourg  […] [0-5]% […] [0-5]% […] [0-5]% 
Reinoxmetal  […] [0-5]% […] [0-5]% […] [0-5]% 
GDE Group 
Ecore  […] [0-5]% […] [0-5]% […] [0-5]% 
Aperam 
([…]68) […] [0-5]% […] [0-5]% […] [0-5]% 
Co fer m.  […] [0-5]% […] [0-5]% […] [0-5]% 
Com.Steel  […] [0-5]% […] [0-5]% […] [0-5]% 
Rizzinox  […] [0-5]% […] [0-5]% […] [0-5]% 
Theo Steil  […] [0-5]% […] [0-5]% […] [0-5]% 
Irmes  […] [0-5]% […] [0-5]% […] [0-5]% 
Met.Extra  […] [0-5]% […] [0-5]% […] [0-5]% 
Cometfer  […] [0-5]% […] [0-5]% […] [0-5]% 
Recymet 
Systems  […] [0-5]% […] [0-5]% […] [0-5]% 
Acciai Mella  […] [0-5]% […] [0-5]% […] [0-5]% 
Soligon  […] [0-5]% […] [0-5]% […] [0-5]% 
Others  […] [10-20]%  […] [10-20]%  […] [10-20]%  
Total scrap 
demand  […] 100%  […] 100%  […] 100% 
Source: Form CO, Annex 24, Table 2 (p. 2)  
                                                 
68  […].  
 
13 (47) However, the Commission notes that these market shares do not r epresent the 
importance of the largest three  scrap suppliers in the market. The large stainless steel 
producers consume large volumes of stainless steel scrap per month (for example 
Aperam  sourced […]mt69 of stainless steel scrap in 2020 from stainless steel scrap 
suppliers, equating to around […]mt per month). Looking at the total volumes 
supplied by some of the smaller and mid -sized scrap suppliers, it is clear that it is 
only the larger stainless steel scrap suppliers that can fulfil the high volumes 
required by the main stainless steel producers. As noted by one market participant, 
“the market is somewhat consolidated, 4 major stainless steel producers are buying 
the majority of their monthly blended stainless steel scrap demand from 3 suppliers 
in Europe .”70 
(48) The importance of the largest two stainl ess steel scrap suppliers  in particular  
(Cronimet and ELG) is also clear from [ELG’s internal documents] . 
Figure 1 – […]  
[…] 
Source: Form CO, Annex 12.02, […] 
(49) Further, as noted in paragraph (17), smaller stainless steel scrap suppliers do not sell 
directly to the stainless steel producers , as only  larger stainless steel scrap suppliers  
are able to fulfil the buyers’ demand for  large volumes . As also noted by one 
customer,  “In the EEA there are three main suppliers of stainless steel scrap. 
Besides ELG, those are Cronimet and Oryx. But there are also smaller (medium) 
suppliers…… Besides these big and medium suppliers there are l ocal small 
suppliers but these normally sell their scrap to the big suppliers .”71 The market 
shares set out in Table 1 include a large market share ( [10-20]%) for “other ” 
suppliers and which has not been attributed to any additional suppliers.  
5.2.1.2.  Downstream  market – production and wholesale of stainless steel products  
(50) In terms of the production and wholesale of stainless steel flat products, Aperam is, 
along with Outokumpu, the most important producer. As can be seen in Table 2 - 
Table 4 below, Aperam is either the largest or second largest compet itor in the 
follow ing markets.72  
(51) In the market for production and wholesale of stainless steel flat hot rolled white 
band products in the EEA , Aperam’s market share is [20-30]%, close to […] 
                                                 
69  Form CO, Table 101. 
70  Reply to question 6 of Questionnaire 1 to stainless steel scrap suppliers.  
71  Non-confidential minutes of a call with a customer, 26 July 2021.  
72  Aperam is also active in production and wholesale of stainless steel flat hot rolled black band prod ucts, 
and production and wholesale of stainless steel welded tubes , but its market shares are in these 
downstream markets are below 5% at EEA -level (Form CO, Annex 26). The analysis of vertical 
relationships focuses on those downstream markets where Aperam ’s market share exceeds 20% . In any 
case, the arguments why no foreclosure concerns arise are equally valid for all plausible downstream 
markets in which Aperam is active.   
 
14 Outokumpu with [20-30]% and ahead of AST with [20-30]% and Acerinox of [10-
20]%.73 
(52) In the market for production and wholesale of stainless steel flat cold rolled products 
in the EEA, Aperam’s market share is [20-30]%, only exceeded by Outokumpu with 
[20-30]% and well ahead of AST with [10-20]% and Acerinox with [5-10]%.74 
(53) In the market for  production and wholesale of stainless steel quarto plates in the 
EEA, Aperam’s share is [20-30]%, followed by Outokumpu ( [20-30]%), SIJ Acroni 
([20-30]%), Acerinox ( [5-10]% ) and AST ( [0-5]%) (see Table 4).75 
(54) The Commission also notes that the ma rket shares set out in Table 2- Table 4 below 
may not fully represent the importance of Aperam as a downstream customer . This is  
notably because the mar ket shares the Notifying Party  provided include sa les 
attributed to Marcegaglia  which is  not active in the production of hot rolled and cold 
rolled stainless steel products  from stainless steel scrap , as well as a significant 
“other” share (up to [20-30]% for some markets), which relate to imports.76 
Table 2: Production and wholesale of stainless steel flat hot rolled white band products 
in the EEA in terms of volume  
 2020 2019 2018 
Volume (mt)  Volume ( mt) Market 
shares 
(%)mt)  Volume ( mt) Market 
shares 
(%)mt)  Volume ( mt) 
Aperam  […] [20-30]%  […] [20-30]%  […] [20-30]%  
Outokumpu  […] [20-30]%  […] [20-30]%  […] [20-30]%  
Acciai 
Speciali 
Terni  […] [20-30]%  […] [10-20]%  […] [10-20]%  
Acerinox  […] [10-20]%  […] [5-10]%  […] [5-10]%  
Marcegaglia  […] [0-5]% […] [0-5]% […] [0-5]% 
Otelinox  […] [0-5]% […] [0-5]% […] [0-5]% 
Others  […] [10-20]%  […] [20-30]%  […] [20-30]%  
Total 
market  […] 100%  […] 100%  […] 100%  
Source: Form CO Annex 24, Table 29  (p.13)  
 
                                                 
73  Form CO, Annex 24, Table 29. Market shares for 2020 in terms of volume. In terms  of value, Aperam’s 
market share in 2020 was [20-30]% (Outokumpu: [30-40]%, AST: [20-30]% and Acerinox: [10-20]%). 
Form CO, Annex 24, Table 40.  
74  Form CO, Annex 24, Table 30. Market shares for 2020 in terms of volume. In terms of value, Aperam’s 
market sh are in 2020 was [20-30]% (Outokumpu: [20-30]%, AST: [10-20]% and Acerinox: [5-10]%). 
Form CO, Annex 24, Table 41.  
75  Form CO, Annex 24, Table 52.  
76  Reply to RFI 5, Q5.  
 
15 Table 3: Production and wholesale of stainless steel flat  cold rolled products in the 
EEA in terms of volume  
 2020 2019 2018 
Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  
Aperam  […] [20-30]%  […] [20-30]%  […] [20-30]%  
Outokumpu  […] [20-30]%  […] [20-30]%  […] [20-30]%  
Acciai Speciali 
Terni  […] [10-20]%  […] [10-20]%  […] [10-20]%  
Acerinox  […] [5-10]%  […] [5-10]%  […] [5-10]%  
Marcegaglia  […] [5-10]%  […] [5-10]%  […] [0-5]% 
Otelinox  […] [0-5]% […] [0-5]% […] [0-5]% 
Others  […] [20-30]%  […] [20-30]%  […] [20-30]%  
Total market  […] 100%  […] 100%  […] 100%  
Source:  Form CO, Annex 24, Table 30  (p. 14)  
 
Table 4: Production and wholesale of stainless steel quarto plates in the EEA in terms 
of volume  
 2020 2019  2018 
Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  
Aperam ( […]) […] [20-30]%  […] [20-30]%  […] [20-30]%  
Outokumpu  […] [20-30]%  […] [20-30]%  […] [20-30]%  
SIJ Acroni  […] [20-30]%  […] [20-30]%  […] [20-30]%  
Acerinox 
(excluding its 
German 
subsidiary 
VDM Metals)  […] [5-10]%  […] [10-20]%  […] [10-20]%  
Acciai 
Speciali Terni  […] [0-5]% […] [0-5]% […] [0-5]% 
Others 
(including 
VDM Metals)  […] [20-30]%  […] [10-20]%  […] [10-20]%  
Total market  […] 100%  […] 100%  […] 100%  
Source:  Form CO, Annex 24, Table 52  (p. 22)  
(55) Aperam is the […] buyer of stainless steel scrap in the EEA. Based on consumption  
shares provided by the Notifying Party, Aperam accounts for [20-30]% of stainless 
steel scrap consumption in the EEA, after Outokumpu, which accounts for [20-30]%. 
Other buyers of stainless steel scrap are AST ( [10-20]% share of consumption), 
 
16 Acerinox ( [10-20]% share of consumption) and several smaller consumers (all belo w 
5%).77  
Table 5: Stainless steel scrap consumption in the EEA in terms of volume 78 
Consumer  2020 2019 2018 
Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  
Outokumpu  […] [20-30]%  […] [20-30]%  […] [20-30]%  
Aperam ( […]) […] [20-30]%  […] [20-30]%  […] [20-30]%  
Thyssenkrupp 
(Acciai 
Speciali 
Termi)  […] [10-20]%  […] [10-20]%  […] [10-20]%  
Acerinox  […] [10-20]%  […] [10-20]%  […] [10-20]%  
Swiss Steel 
Group  […] [0-5]% […] [0-5]% […] [0-5]% 
Valbruna  […] [0-5]% […] [0-5]% […] [0-5]% 
SIJ Acroni  […] [0-5]% […] [0-5]% […] [0-5]% 
Sandvik  […] [0-5]% […] [0-5]% […] [0-5]% 
Cogne Acciai 
Speciali  […] [0-5]% […] [0-5]% […] [0-5]% 
Olarra  […] [0-5]% […] [0-5]% […] [0-5]% 
BGH  […] [0-5]% […] [0-5]% […] [0-5]% 
Acería de 
Álava 
(Tubacex)  […] [0-5]% […] [0-5]% […] [0-5]% 
Others  […] [0-5]% […] [5-10]%  […] [5-10]%  
Total scrap 
demand  […] 100%  […] 100%  […] 100%  
Source:  Form CO, Annex 24, Table 23 (p. 10)  
5.2.2.  Input foreclosure  
5.2.2.1.  The Notifying Party’s views  
(56) The Notifying Party submits that it lacks market power to have the ability to 
successfully engage in any input foreclosure strategy, as the Parties’ combined 
market share in collection, processing and trading of stainless steel scrap is below 
30% at the EE A-level. ELG accounts for only approx. [10-20]% of the EEA -wide 
market for collection, processing and trading of stainless steel scrap. Customers can 
continue to source stainless steel scrap from strong competitors upstream, such as 
Cronimet Group ( [20-30]%), Oryx ( [10-20]%), Paul Jost ( [0-5]%) and Innovative 
                                                 
77  Form CO, Annex 24, Table 23.  
78  The consumption shares include “internal use” stainless steel scrap, namely scrap that has been produced 
and recycled within the stainless steel producers own production.  
 
17 Metal Recycling ( [0-5]%).79 Aperam’s competitors would also be able to switch 
easily to alternative suppliers across the entire EEA. In addition,  stainless steel scrap 
is a commodity product mostly proc ured on a spot basis without any brand loyalty.80 
[…].81 
(57) The Notifying Party submit s that it does not have an incentive to foreclose access to 
inputs, as Aperam would prefer to source scrap from a third party supplier in the 
EEA if offered at a lower price c ompared to ELG (e.g. because of a transport cost 
advantage). A strategy of sourcing scrap volumes from ELG at any price would not 
be sustainable for Aperam.82 Moreover, redirecting any volumes of ELG to 
Aperam’s  plants will free up volumes elsewhere and not reduce availability for 
competitors.83 Given Aperam’s limited market share at the downstream level, the 
merged entity would not be able to materially benefit from any input foreclosure 
strategy.84 Finally, [summ ary of Aperam’s post -merger sourcing strategy ]. Instead, 
Aperam’s main objective with the Transaction is to make material flows more 
efficient and to optimise the composition of scrap for its needs.85 Nevertheless, the 
markets are not highly concentrated an d, therefore, any foreclosure strategy would 
have no (long -term) impact on effective competition.86  
5.2.2.2.  The Commission’s assessment  
(58) Stainless steel scrap is the most important input for the production of stainless steel, 
accounting for approximately [40-50]% of the total cost of downstream production.87 
While the Notifying Party argues that ELG’s upstream  market shares are low and 
could not therefore give rise to any input foreclosure concerns, the Commission 
notes that for at least one customer,  Acerinox, which  is based in Spain, ELG is an 
important  supplier due to the  particularly close  proximity of ELG’s scrap yard to the 
customer’s steel mill.   
(59) As observed by the Notifying Party, it is important for stainless steel producers to 
ensure that stainless steel scrap can be sourced locally : […]88 Therefore, the  
Commission’s investigation focussed on whether the Transaction could give rise to 
input foreclosure for Acerinox in particular . 
(60) The Commission’s  investigation focussed on Spain, where ELG has a scrap yard i n 
San Roque , Cádiz,  in southern Spain. This is located only 8km from the steel mill of 
Acerinox, one of Aperam’s main competitors. Acerinox’s mill near Algeciras , Cádiz,  
in southern Spain has access to a deep port facility and Acerinox sources its stainles s 
steel scrap both by container ship  (with scrap shipped from Germany or the 
                                                 
79  Form CO, paragraphs 650 et seq.  
80  Form CO, para graph  654; para graphs  684 et seq. ; reply to RFI 9, page 2 et seq.  
81  Form CO, paragraphs 612 et seq.; paragraph 676  ; paragraph 698; reply to RFI 9, page 3.  
82  Form CO, paragraph 655; paragraphs 693 et seq.; reply to RFI 9, page 3.  
83  Reply to RFI 9, page 4.  
84  Form CO, paragraph 656.  
85  Form CO, paragraph 657; reply to RFI 9, paragraphs 17 et seq.  
86  Reply to RFI 9, Q7, para graphs  49 and 50.  
87  Form CO, Annex 26, Table 19.  Out of Aperam’s total cost for the production of grade 304  flat stainless 
steel products in the last three years  in the EEA , externally sourced scrap accounted for  […]%, […]% and 
[…]%. For grade 316  flat stainless steel products  the share is slightly lower, with […]%, […]% and 
[…]%. (Form CO, Annex 26, Table 20).  
88  Reply to RFI 9, Q1, paragraph 5.  
 
18 Netherlands)  and also by truck from ELG’s San Roque yar d. There are advantages to 
ensuring this balance of supplies of stainless steel scrap .89  
(61) In terms of ability  to foreclose, stainless steel scrap is an important input for the 
downstream production of stainless steel.90 The Commission’s market investigation 
also confirmed the importance of having scrap suppliers close to the customers’ 
production facilities.91 However, the Commiss ion notes that Oryx, the third largest 
stainless steel scrap supplier in the EEA, has recently opened a scrap yard in 
Vilanova i la Geltrú, 40 km south of Barcelona, Spain.92 This scrap yard is around 
1000km away from Acerinox’s facilities in southern Spain  and the Commission 
considers that it could provide Acerinox with an alternative source of supply of 
stainless steel scrap  that is still located on the Iberian peninsula .  
(62) In terms of incentive  to foreclose , the Commission notes that […]. 93 Acerinox is the 
largest stainless steel producer in Spain. The Commission notes that any attempt to 
foreclose Acerinox would necessarily entail loss of sales of stainless steel scrap at 
the San Roque yard; Aperam’ s own steel mills  are located in Belgium ( 2,210km to 
Châtelet  and 2,309km to Genk)94 [Aperam’s future sourcing strategy post -merger] .95  
(63) In summary, the Commission therefore considers that any input foreclosure strategy 
pursued by Aperam could not have any overall detrimental effects on competition, 
due to the possibility of Acerinox to source from alternative suppliers of stainless 
steel scrap, including in particular from Oryx’s scrap yard in Vilanova i la Geltrú.  
(64) The Commission does not consider that the merged entity would have the ability or 
incentive to foreclose any of the other downstream stainless steel producers. Either 
these producers are not currently sup plied by ELG or are supplied in limited 
volumes96 or their stainless steel mills are not located in such a close proximity to 
the ELG y ard as compared to Acerinox.   
(65) In view of the above, t he Commission concludes that the Transaction does not raise 
serious doubts as to its compatibility with the internal market and the functioning of 
the EEA Agreement in relation to the vertical link between the supply of stainless 
steel scrap upstream and the production and wholesale of stainless steel products 
downstream on the basis of input foreclosure.  
5.2.3.  Customer foreclosure  
5.2.3.1.  The Notifying Party’s views  
(66) The Notifying Party  submit s that it lacks marke t power to have the ability to 
successfully engage in any customer foreclosure strategy, as Aperam’s market shares 
                                                 
89  Non-confidential minutes of a call with a customer, 26 July 2021.  
90  Form CO, Annex 26, Table 19.   
91  Replies to question 15 and 18 of Questionnaire 2 to stainless steel scrap customers.   
92  Non-confidential minutes of a call with a competitor, 9 November 2021.  
93  San Roque supplied to Acerinox […] mt in 2019 and […] mt in 2020.  Annex 17 and Annex 18 from Form 
CO. 
94  Reply to RFI 9, Q6, paragraph 42.  
95  Reply to RFI 9, Q6, paragraph 47.  
96  Replies to question 20  of Questionnaire 2 to stainless steel scrap c ustomers; non-confidential minut es of a 
call with a customer, 22  July 2021 . 
 
19 in relation to production and wholesale of stainless steel are respectively below 30% 
at the EEA -wide level and a number of competitors with considerable stainless steel 
requirements remain in the market.97 Aperam sources stainless steel scrap from […]. 
In these countries there are a number of competitors including AST  which has 
stainless steel production  in Italy, the Swiss Steel Group  which  has several stainless 
steel production sites in Germany and in France , together with a number of 
additional stainless steel producers including Valbruna, SIJ Acroni, Sandvik, Cogne 
Acciai Speciali, Olarra, BGH  and Aceria de Alava (Tubacex) .98 
(67) The Notifying Pa rty submit s that it  does not have an incentive to stop buying 
stainless steel scrap from other suppliers than ELG, as […].99  
5.2.3.2.  The Commission’s assessment  
(68) Aperam is an important downstream customer for stainless steel scrap  as can be seen 
in Table 5. Aperam ( […]) is the second largest downstream stainless steel producer 
in the EEA, accounting for [20-30]% of consumption of stainless steel scrap in terms 
of volume in 2020. Only Outokumpu (based in Finland) is of a similar scale, with a 
[20-30]% share of consumption.100 The third and fourth players are significantly 
smaller, accounting for [10-20]% (AST, base d in Italy) and [10-20]% (Acerinox, 
based in Spain) of all stainless steel scrap consumption. The next largest player 
accounts for [0-5]% of stainless steel scrap consumption (Swiss Steel) and the 
remaining [10-20]% of consumption is fragmented amongst man y smaller players.101  
(69) Of the main stainless steel producers, Aperam is the only one centrally located in 
Europe, with its main production facilities in Châtelet  and Genk (both located in 
Belgium)  and Industeel’s production facilities in Charleroi (also Belg ium) and Le 
Creusot (France) . By contrast, Outokumpu’s steel plants are in Finland, Acerinox in 
southern Spain (Algeciras) and AST in central Italy (Terni). Aperam is well placed 
to receive stainless steel scrap from stainless steel scrap  suppliers  in the Netherlands 
and Germany where the main scrap yards are located. Due to this ce ntral location, 
Aperam sources the […] of its scrap within a […] km radius.102  
(70) While the Notifying Party argues that transport costs are insignificant,103 this is not 
supported by the Commission’s market investigation.104 For example, one scrap 
supplier noted that : “in terms of absolute cost, transport costs do vary 
significantly…within Europe. The difference – particularly in relation to the 
potential gross margin – shows how important the distance and the connection of 
means of transport between supplier and customer is .”105 It is clear also from data 
supplied by the Notifying Party that stainless steel scrap that has been transported 
                                                 
97  Form CO, paragraphs 704 et seq.  
98  Form CO, paragraphs 710 and 711.  
99  Form CO, paragraph 660. 
100  In 2019, Aperam […] accounted for [20-30]% of stainless steel scrap consumption, compared to 
Outokumpu’s [20-30]%. 
101  Form CO, Annex 24, Table 23 . 
102  Form CO, Annex 21 . 
103  See for example, Form CO, paragraphs 149 and 162.  
104  Replies to question 13 of Questionnaire 1 to stainless steel scrap supp liers.  Replies to question 14  of 
Questionnaire 2 to stainless steel scrap customers.   
105  Reply to question 13  of Questionnaire 1 to stainless steel scrap suppliers.  
 
20 over shorter distances, i ncurs lower transport costs than stainless steel scrap 
transported over longer distances.106  
(71) [Aperam’s future stainless steel scrap sourcing strategy] .107 [Aperam’s future 
stainless steel scrap sourcing strategy] .108 
(72) […]. The Commission has therefore investigat ed the impact of the Transaction on 
Aperam’s current stainless steel scrap suppliers and whether the Transaction may 
give rise to customer foreclosure concerns.  
(73) Over the last five years, Aperam has […] sourced its supplies of stainless steel scrap 
from the  largest suppliers of stainless steel scrap, namely Cronimet, ELG and 
Oryx.109 By way of example, in 2019 Aperam sourced […]% of its total stainless 
steel scrap supplies from ELG, […]% from Cronimet, […]% from Oryx and in 2020, 
[…]% from each of ELG and Cronimet and […]% from Oryx. These shares of 
sourcing have remained […] over the last five years, with Aperam sourcing the […] 
volumes from ELG and Cronimet ( […] suppliers of stainless steel scrap in the EEA) 
and approximately […]% o f its total supplies from Oryx. A peram sources […] 
volumes of stainless steel scrap from the suppliers Paul Jost and Derichebourg, for 
example in 2019 Aperam sourced […]mt from Paul Jost and […]mt from 
Derichebourg and in 2020, […]mt from Paul Jost and […]mt from Derichebourg.110 
The remainder of Aperam’s stainless steel scrap (around […]% of its total supply in 
2019, […]% in 2020) is sourced from a number of smaller suppliers.  
(74) The supply of stainl ess steel scrap is core to Cronimet, Oryx and Paul Jost’s 
business.111 Derichebourg is a recycling company focussed on the recycling of  
ferrous and non -ferrous metal and t he supply of stainless steel scrap accounts for a 
small proportion of its total turnover.112  
(75) The Commission investigated whether, post -Transaction, t he merged entity would 
have the ability to foreclose these suppliers, by assessing whether they would have 
sufficient alternatives to sell their output.  
(76) Indeed, in light of the Transaction, market participants and in particular stainless 
steel scrap suppl iers, have envisaged the possibility of needing to switch to 
alternative customers if Aperam were to reduce its purchases from them.  Several are 
in negotiations with other  downstream stainless steel producers.113 For example one 
noted that : “already today we are discussing such scenarios with our customers and 
                                                 
106  By way of example, based on ELG’s own transport data, ELG’s cost of transport stainless steel scrap 
transported over […]km is EUR […] and is EUR […] for stainless steel scrap transported over distances 
greater than […]km. See Table 12, Form CO.  
107  Form CO, paragraphs 613 – 618. 
108  Form CO, paragraph 618.  
109  Form CO, paragraph 553.  
110  Form CO,  Tables 101 and 102.  
111  See replies to question 1 and 2 of Questionnaire 1  to stainless steel scrap suppliers. See also 
https://www.cronimet.de/en/expertise/materials/ , https://www.oryx.com/ , https://www.jost -
recycling.com/en/business -fields/stainless -steel-scrap .  
112  Reply to question 1 and 2  of Questionnaire 1 to stainless steel scrap suppliers.  
113  Replies to question 32  of Questionnaire 1 to stainless steel scrap suppliers.   
 
21 the majority is prepared to increase purchase volumes and to compensate missing 
ELG volumes .”114  
(77) However, and as noted above, Aperam is the only major stainless steel producer that 
is loc ated centrally in Europe. Suppliers that switch their sales from Aperam to 
alternative customers such as Acerinox, Outokumpu or AST would necessarily face 
increased transport costs as these suppliers are located much further away from the 
main stainless st eel scrapyards in Germany and the Netherlands.115 Several suppliers 
therefore noted that re -arranging supplies of stainless steel scrap would increase their 
transport costs and would have a negative impact on their profitability.116  
(78) Despite this, t he Commiss ion has found that certain suppliers were already supplying 
lower volumes to Aperam than they had in the past. For example, between the years 
2019 and 2021, the volumes that Paul Jost has supplied to Aperam have […]: […]mt 
in 2019, […] in 2020 and […] in 2021.117 The Commission therefore notes that it is 
possible for suppliers to shift their supplies to alternative customers.  
(79) Indeed, by way of example, one supplier considered that the Transaction should not 
raise concerns, because even if Aperam decided to s ource its scrap only from ELG in 
the future, this would provide suppliers such as themselves alternative outlets in the 
future. “For the overall market, [….] does not see a problem because the quantities 
within the market concerning supply and demand will stay the same. Even if Aperam 
should decide to source its scrap only from ELG after the merger that should not 
dramatically change the market. This is because for the quantities that Aperam 
would now source from ELG there would then be other customers (for mer ELG 
customers), which would need a new supplier .”118 
(80) The Commission  also notes that the Transaction takes place at a time of very strong 
demand for stainless steel scrap , which should ensure a high number of available 
outlets for scrap suppliers in Europe .119 Market participants referred both to a general 
increase in demand but also to the need to ensure sustainability by ensuring the 
maximum recycling of stainless steel scrap . 
(81) On the basis that certain stainless steel scrap suppliers have already star ted to 
diversify their  sales of stainless steel scrap and in the expectation that downstream 
customers may also need to increase their purchases from other upstream stainless 
steel scrap suppliers  post-Transaction , the Commission considers that the merged 
entity would not have the ability to conduct a customer foreclosure strategy.  
(82) In view of the above, the Commission concludes that the Transaction does not raise 
serious doubts as to its compatibility with the internal market and the functioning of 
the EEA Agreement in relation to the vertical link between the supply of stainless 
                                                 
114  Reply  to question 32 of Questionnaire 1 to stainless steel scrap suppliers.   
115  By way of example of increased transport costs, ELG’s costs  of transport stainless steel scrap transported 
over […]km is EUR […] and is EUR […] for stainless steel scrap transported over distances greater than 
[…]km. See Table 12, Form CO.  
116  Replies to  question 32  of Questionnaire 1 to stainless steel scrap suppliers.   
117  Form CO, Tables 101 and 102, reply to RFI 11, question 9.   
118  Non-confidential minutes of a call with a competitor, 23 July 2021.  
119  Replies to question 30  of Questionnaire 1 to stai nless steel scrap suppliers  and to question 24 of 
Questionnaire 2 to stainless steel scrap customers . 
 
22 steel scrap upstream and the production and wholesale of stainless steel products 
downstream on the basis of customer foreclosure.  
5.2.4.  Access to commercially sensitive information  
5.2.4.1.  The Notifying Party’s views  
(83) The Notifying Party  submit s that its  limited market pow er both upstream and 
downstream restricts the impact amount of transparency in the markets that any 
information exchange would bring about. Moreover, the lack of market power 
excludes a significant impediment of competition resulting from the Parties actin g 
on the exchanged information, in particular given that the information collected 
would not be complete (in particular […]).120 Furthermore, as a reference price such 
as the London Metal Exchange or Fastmarkets is used for pricing, any possible 
information will not enable it to gain significant visibility on its competitors’ cost 
structure at the downstream level of production and wholesale of stainless steel 
products or production and direct sale of nickel alloy products.121 
5.2.4.2.  The Commission’s assessment  
(84) As c ertain market participants raised concerns that the merged entity would have 
access to pricing and other confidential conditions related to the supply of stainless 
steel scrap ,122 the Commission investigated this claim on the basis of the legal 
framework out lined in paragraph (45), but considers that  no concerns arise for the 
following reasons.  
(85) The Commission observes that the Transaction would increase transparency in the 
market for the supply of stainless steel scrap […]. In particular, Aperam could  
receive  access to ELG’s […].123 ELG, via Aperam, would also receive access to 
[…]. The Commission considers that these conditions are not transparent; as note d 
by the Notifying Party’s own reply, […].124 Any information disclosed would 
nonetheless  necessarily only relate to either the share of purchases made from ELG 
or the share of sales made to Aperam and this therefore provides a limit to the insight 
gained by  the merged entity post -Transaction.  
(86) However, the Commission notes that based on the conclusions on input and 
customer foreclosure above, market participants may take steps in order to manage 
any potential disclosure of commercially sensitive information.  For example, 
downstream customers may decide to limit their purchasing from ELG in order to 
reduce access to potentially sensitive informati on and upstream competitors may 
also decide  to redirect their supplies away from Aperam and towards other 
downstrea m customers.  
                                                 
120  Form CO, paragraphs 728 et seq.  
121  Form CO, paragraphs 731 et seq.; reply to RFI 9, paragraphs 28 et seq.  
122  Replies to Q33, questionnaire 1 to competitors and replies to question 28 of Questionnaire 2 to stainless 
steel scrap customers.  
123  Form CO, paragraphs 728 – 736. 
124  Reply to RFI 9, paragraph 67.   
 
23 (87) In view of the above, the Commission concludes that the Transaction does not raise 
serious doubts as to its compatibility with the internal market and the functioning of 
the EEA Agreement based on access to commercially sensitive information.  
5.3. Nickel alloy scrap  
(88) No affected market arises for the vertical relationship between processing and 
blending of  nickel alloy scrap, where ELG is active, and different nickel alloy 
products and stainless steel products for which nickel alloy scrap is an impor tant 
input, where Aperam is active. Given concerns about input foreclosure by some 
market participants as a result of this vertical relationship, the reasons why the 
Commission considers input foreclosure unlikely will nevertheless be discussed 
below.  With the exception of nickel alloy rod where Aperam’s market shares are still 
significantly below 30%, Aperam’s market shares did not exceed 10% on any of the 
downstream markets for which nickel scrap is used as an input.125 Therefore, 
customer foreclosure can b e excluded on the basis of lack of market power.  
5.3.1.  Market shares  
5.3.1.1.  Upstream  market – supply of nickel alloy scrap  
(89) The market for the supply of nickel alloy scrap in the EEA is mostly served by two 
major players who are active across the EEA: Cronimet and ELG . In terms of the 
supply of nickel alloy scrap, ELG and Cronimet are the largest suppliers in the EEA 
with [10-20]% market share each. The next largest player (Siegfried Jacob) has a [0-
5]% share , followed by Wyman Gordon (Caledonian Alloys) with [0-5]%. The 
remainder of the mar ket is fragmented among small local players.126 The 
Commission notes that the  market shares provided by the Notifying P arty are based 
on estimates by ELG, […].127 The results of the market investigation indicate that 
actual market shares  might diverge from the provided estimates, but would not result 
in significantly higher market shares for ELG.128 
5.3.1.2.  Downstream  market – production and wholesale of nickel alloy products  
(90) Aperam is the second largest buyer of nickel alloy scrap in the EEA, accounting for 
[20-30]% of nickel alloy scrap consumption in the EEA, after VDM Metals which 
accounts for [30-40]%. Other buyers account for less than [10-20]% of demand 
(Voestalpine with  [5-10]% and Deutsche Nickel, Sandvik and ERAMET with [5-
10]% each, as well as several buyers accounting for [5-10]% or less).129 
                                                 
125  Notably, Aperam is also active in (i) production and sa le of nickel alloy semis, (ii) production and sale of 
nickel alloy bars, (iii) production and sale of nickel alloy wire, (iv)  production and sale of nickel alloy 
strip and (vi) production and sale of n ickel alloy “plates and sheets”, but its market shares are in these 
downstream markets are below 10% at EEA -level  (Form CO, Annex 26) . The analysis of vertical 
relationships focuses on those downstream markets where Aperam’s market share exceeds 20%. In any 
case, the arguments why no foreclosure concerns arise  are equally valid for all plausible downstream 
markets in which Aperam is active.  
126  Form CO, Annex 24, Table 25.  
127  Form CO, paragraph 332.  
128  Replies to question 16.1 of questionnaire 4 to nickel alloy scrap customers.  
129  Form CO, Annex 24, Table 26.  
 
24 (91) In terms of nickel alloy products, Aperam’s share is relatively low in most sub -
segments, with the exception of nickel alloy wir e rod in the EEA where Aperam […] 
with [20-30]%, followed by BGH ( [20-30]%), VDM Metals ( [10-20]%), Sandvik 
([5-10]%), Gebauer & Griller ( [5-10]%), Deutsche Nickel ( [0-5]%), Böhler ( [0-5]%) 
and Carpenter Technology ( [0-5]%). […].  
(92) The Notifying Party also notes that it is not in a position to estimate the total size, its 
own market share, the market shares of its competitors or imports into the EEA in 
relation to production and direct sale of the various nickel alloy products in terms of 
value in the EEA in  2018, 2019 or 2020.130 
Table 6: Nickel base alloy scrap consumption in the EEA in terms of volume  
Consumer  2020 2019 2018 
Volume 
(mt) Market 
shares (%)  Volume 
(mt) Market 
shares (%)  Volume 
(mt) Market 
shares (%)  
VDM Metals  […] [30-40]%  […] [20-30]%  […] [30-40]%  
Aperam  […] [20-30]%  […] [20-30]%  […] [20-30]%  
Böhler 
(Voestalpine)  […] [5-10]%  […] [5-10]%  […] [5-10]%  
Deutsche Nickel  […] [5-10]%  […] [5-10]%  […] [5-10]%  
Sandvik  […] [5-10]%  […] [5-10]%  […] [5-10]%  
Aubert & Duval 
(ERAMET Group)  […] [5-10]%  […] [5-10]%  […] [5-10]%  
Foroni  […] [0-5]% […] [5-10]%  […] [5-10]%  
Valbruna  […] [0-5]% […] [5-10]%  […] [0-5]% 
BGH  […] [0-5]% […] [0-5]% […] [0-5]% 
Vacuumschmelze  […] [0-5]% […] [0-5]% […] [0-5]% 
Others  […] [0-5]% […] [0-5]% […] [5-10]%  
Total scrap demand  […] 100%  […] 100%  […] 100%  
Source:  Form CO, Annex 24, Table 26 (p. 12)  
                                                 
130  Form CO, paragraph 337.  
 
25 Table 7: Production and sale of nickel alloy wire rod in the EEA in terms of volume  
 2020 2019 2018 
Volume (mt)  Market 
shares  (%) Volume (mt)  Market 
shares (%)  Volume (mt)  Market 
shares (%)  
Aperam  […] [20-30]%  […] [20-30]%  […] [10-20]%  
BGH  […] [20-30]%  […] [10-20]%  […] [10-20]%  
VDM Metals  […] [10-20]%  […] [10-20]%  […] [10-20]%  
Sandvik  […] [5-10]%  […] [5-10]%  […] [5-10]%  
Gebauer & 
Griller  […] [5-10]%  […] [5-10]%  […] [5-10]%  
Deutsche Nickel  […] [0-5]% […] [5-10]%  […] [5-10]%  
Böhler  […] [0-5]% […] [0-5]% […] [0-5]% 
Carpenter 
Technology  […] [0-5]% […] [0-5]% […] [5-10]%  
Others  […] [10-20]%  […] [10-20]%  […] [20-30]%  
Total market 
volume  […] 100%  […] 100%  […] 100%  
Source:  Form CO, Annex 24, Table 49  (p. 21)  
5.3.2.  The Notif ying Party ’s view  
(93) As already shown above, the Notifying Party  submit s that it lacks market power to 
have the ability to successfully engage in any input foreclosure strategy, as the 
Parties’ combined market share in collection, processing and trading nickel alloy 
scrap is below 30% at the EEA -level. ELG accounts for only approx imately  [10-
20]% of the EEA -wide market for collection, processing and trading of nickel alloy 
scrap . Customers can continue to source nickel alloy scrap from strong competitors 
upstream, such as Cronimet Group ( [10-20]%), Siegfried Jacob ( [0-5]%) and 
Wyman Gordon  (Caledonian Alloys; [0-5]%).131 
(94) Besides, externally sourced nickel alloy scrap is in general not an as important input 
for the production of nickel alloy products as stainless steel scrap is for the 
production of stainless steel products. For producing nick el alloys, specific amounts 
of different metals and elements need to be combined. Such a stringent chemical 
composition often requires pure primary raw materials. Thus, nickel alloy products 
could be manufactured or effectively sold without nickel alloy sc rap.132 
5.3.3.  The Commission’s assessment  
(95) The Commission considers that the  Parties are not able to foreclose access to nickel 
alloy scrap . Although the market shares do not fully reflect the position of ELG in 
the upstream market, the results of the market invest igation indicate that a large 
number of credible alternative suppliers are  active in the upstream market. The 
customers who replied to the market investigation indicated that they sourced from 
                                                 
131  Form CO, paragraphs 650 et seq.  
132  Form CO, paragraphs 677 and 679.  
 
26 up to ten different suppliers in the past year133 and could switc h to most of them if 
ELG were to reduce their supplies and increase price and/or reduce quality of their 
supplies.134 The majority of  customer s described switching as rather easy. According 
to one respondent,  a switch “ would take few days and it can be done easily ”.135 
Therefore, it is unlikely that the Parties would have the ability to foreclose access to 
nickel alloy scrap.  
(96) The Commission also considers that Aperam does not have an incentive to 
significantly increase its purchases of nickel alloy scrap from ELG. First, as 
explained in paragraph (94), secondary raw material cannot be easily used to 
substitute  primary raw material in the production of nickel alloys , […]. Moreover,  
unlike in stainless steel scrap,  […].136 In 2020, Aperam’s re -using of nickel alloy 
scrap coming about as a by -product of Aperam’s nickel alloy production accounted 
for approx. […]% of Aperam’s nickel alloy’s raw material costs in the EEA.137 In 
2019, Aperam’s re -using of nickel alloy scrap coming about as a by -product  of 
Aperam’s nickel alloy production accounted for approx. […]% of Aperam’s nickel 
alloy’s raw material costs in the EEA.138 Finally, many important buyers of nickel 
alloy scrap  remain in the market post -Transaction to which ELG would lose sales of 
nickel al loy scrap in case it restricted its supply, or supplied at worse conditions, 
without any benefit for Aperam . Therefore, it  is unlikely that the Parties would have  
the incentive to foreclose access  to nickel alloy  scrap . 
(97) In summary, the Commission therefore  considers that any input foreclosure strategy 
pursued by Aperam could not have any overall detrimental effects on competition, 
due to the possibility of customers to source from alternative suppliers of nickel 
alloy scrap.  
(98) In view of the above,  the Commission  concludes  that the Transaction  does not  raise 
serious  doubts  as to its compatibility  with the internal  market  and the functioning  of 
the EEA Agreement  in relation  to the vertical  link between nickel alloy scrap, and 
different nickel alloy products and stainless steel products.  
5.4. Titanium scrap  
(99) The Transaction also results in a vertically affected market  between the market for 
processing and blending of titanium scrap, where ELG is active , and Aperam’s 
activity as buyer of titanium scrap.  Aperam’s share of sourcing volumes of titanium 
scrap  for the purposes of its nickel alloy production  remained below […]% in the 
last three years.139 Therefore, customer foreclosure can be excluded on the basis of 
lack of m arket power. Aperam  did not source any titanium scrap for […].140 
Aperam’s market shares also did not exceed 30% on any of the downstream markets 
                                                 
133  Replies to question 17 of Questionnaire 4 to nickel alloy scrap customers.  
134  Replies to question 20.1 and 20.2 of Questionnaire 4 to nickel alloy scrap cus tomers.  
135  Replies to question 20.3 of Questionnaire 4 to nickel alloy scrap customers.  
136  As the Notifying Party explains, t he aerospace segment is a key area of application for nickel -base 
superalloys as well as titanium. Due to the zero -defect policy , a lot of scrap is generated during the 
production of products for the aerospace segment. […]. (Form CO, paragraph 86.)  
137  Form CO, paragraph 335.  
138  Form CO, paragraph 336.  
139  Form CO, paragraph 282.  
140  Form CO, Table 31 (p. 64); reply to RFI 11, paragraph 8. 
 
27 for which titanium is used as an input (see paragraph (91)). Given that ELG’s market 
share on the upstream market exceeded 30% in 2020, the reasons why the 
Commission considers input foreclosure unlikely will be discussed below . 
5.4.1.  Market shares  
(100)  The market for col lection and processing of titanium scrap in the EEA has one big 
player with a market share of [30-40]% in 2020 : ELG. The next largest players are 
Recymet with a market share of [5-10]%, Cronimet Group and Co.Fer.M (both [5-
10]%). They are followed by SOS Metals ( [5-10]%) and AmeriTi Manufacturing 
Company and Aerometal (both [5-10]%). Other market players do not have market 
shares exceeding 3%.141  
(101)  The Commission notes that the Parties have very limited visibility on the market 
position of competitors in relation to processin g and blending of titanium scrap .142 
The Commission’s market investigation did not produce any evidence that ELG’s 
market power might exceed that suggested by the market shares provided by the 
Parties.  
(102)  Concerning the downstream market, t he market shares correspond with the one for 
nickel alloy products (see  paragraph  (50) and paragraph  (90))143. 
5.4.2.  The Notifying Party’s view  
(103)  The Notifying Party submits that the Parties will have no ability to foreclose access 
to titanium scrap post -Transaction. […] stainless steel scrap, not on titanium which 
is in general not an important input for nickel alloy manufacturers.144 Second,  nickel 
alloy producers can use, and easily switch to ferrotitanium (a primary alloy) and/or 
titanium scrap as sources of titanium.145 Third,  given the Parties' low m arket shares 
in relation to collection and processing as well as collection, processing and trade of 
this scrap in the EEA, the Transaction will not negatively affect the overall 
availability of titanium scrap for traders or manufacturers of steel products  in the 
EEA in terms of general availability, price or quality.146 Fourth, the Parties will 
continue to face numerous strong  competitors in relation to collection and processing 
of titanium scrap that are not less efficient, less preferred alternatives and d o not lack 
the ability to expand output.147  
(104)  The Notifying Party submits that the Parties will also have no incentive to foreclose 
access to titanium scrap post -Transaction. First, Aperam is not well placed to capture 
the demand diverted away from Aperam’s c ompetitors as a result of a foreclosure 
strategy, as titanium is not an essential input in nickel alloy scrap […].148 Second, 
                                                 
141  Aperam also has  a market share of [0-5]% via its ownership of a scrapyard in Belgium, see footnote 65. 
(Form CO, Tables 27 and 30).  
142  Form CO, paragraph 256.  
143  Titanium is also an input for stainless steel products, but it is purchased as part of  the stainless steel scrap 
blend. […] the Commission considers the relevant downstream markets to be nickel alloy products.  
144  Form CO, paragraph 287.  
145  Form CO, paragraph 288.  
146  Form CO, paragraph 291.  
147  Form CO, paragraphs 290 et seq.  
148  Form CO, para graph 293.  
 
28 since Aperam’s market share in any EEA -wide market segment for production and 
direct sale of nickel alloy products is below 30%, the  Parties would not benefit from 
any price increases at these downstream markets.149 
5.4.3.  The Commission’s assessment  
(105)  The Commission considers that the Parties are not able to foreclose access to 
titanium scrap. ELG’s market share in the upstream market for proces sing and 
blending of titanium scrap only […] exceeded 30%  in 2020 and remained below 
30% (at [20-30]%) in 2018 and 2019 . Although ELG is the clear market leader in 
collection  and processing  of titanium scrap, numerous competitors remain in the 
market , accounting together for around  [70-80]% of the supply of titanium scrap. 
Therefore, it is unlikely that the Parties would have the ability to foreclose access to 
titanium  scrap.  
(106)  The Commission also considers that Aperam does not have an incentive to 
significantly increase its purchases of titanium scrap from ELG. Indeed, Aperam ’s 
purchases of titanium scrap  only accounted for […]% of titanium sourced in the 
EEA in the last three years.  This indicates that Aperam’s demand for titanium scrap 
is […], also gi ven that l ike nickel alloy scrap, a large share of titanium scrap is 
generated internally , covering a large share of Aperam’s demand (see paragraph 
(96)). Moreover, Aperam uses titanium scrap […], where its downstream market 
share does not exceed 30% in any plausible market .  
(107)  Finally, many important buyers of titanium scrap remain in the market post -
Transaction to which ELG would lose sales of titanium scrap in case it restricted its 
supply, or supplied at worse conditions, without any benefit for Aperam. In 2020 and 
2018 , Aper am only accounted for […]% of ELG’s sales of titanium scrap to nickel 
alloy producers in the EEA and for less than […]% of its overall sales of titanium 
scrap. In 2019, sales of titanium scrap from ELG to Aperam were higher , but 
Aperam still only accounted  for […]% of ELG’s sales of titanium scrap to nickel 
alloy producers in the EEA and for […]% of its overall sales of titanium scrap.150 
For these reasons , it is unlikely that the Parties would have the incentive to foreclose 
access to titanium scrap.  
(108)  In summ ary, the Commission therefore considers that any input foreclosure strategy 
pursued by Aperam could not have any overall detrimental effects on competition, 
due to the possibility of customers to source from alternative suppliers of titanium 
scrap.  
(109)  In view of the above,  the Commission  concludes  that the Transaction  does not  raise 
serious  doubts  as to its compatibility  with the internal  market  and the functioning  of 
the EEA Agreement  in relation  to the vertical  link between titanium scrap and 
different nickel alloy products.   
                                                 
149  Form CO, paragraph 294.  
150  Form CO, Tables 31 and 32.  
 
29 6. CONCLUSION  
(110)  For the above reasons, the European Commission has decided not to oppose the 
notified concentration and to declare it compatible with the internal market and with 
the EEA Agre ement. This decision is adopted in application of Article 6(1)(b) of the 
Merger Regulation and Article 57 of the EEA Agreement.   
For the Commission  
 
 
(Signed)  
Margrethe VESTAGER  
Executive Vice-President