CELEX: 32016M7973
Language: en
Date: 2016-08-04 00:00:00
Title: Commission Decision of 04/08/2016 declaring a concentration to be compatible with the common market (Case No COMP/M.7973 - GERDAU / SUMITOMO / JV) according to Council Regulation (EC) No 139/2004 (Only the English text is authentic)

|[pic]                             |EUROPEAN COMMISSION                                                                                      |

                                        Brussels, 02.08.2016
                                        C(2016) 5158 final

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|                                                                       |To the notifying parties:                                              |

Dear Sirs,

Subject:    Case M.7973 – GERDAU / SUMITOMO / JV
         Commission decision pursuant to Article 6(1)(b) of Council Regulation (EC) No 139/2004[1] and Article 57 of the Agreement on the
         European Economic Area[2]

 1. On 7 July 2016, the European Commission received notification of a proposed concentration pursuant to Article 4 of the Merger Regulation  by
    which Gerdau S.A.  ("Gerdau", Brazil) and Sumitomo Corporation ("Sumitomo", Japan) acquire within the meaning  of  Article  3(1)(b)  of  the
    Merger Regulation joint control of  Gerdau-Summit Aços Fundidos E Forjados S.A. (the "JV", Brazil) by way of purchase of shares.[3]

 2. The business activities of the undertakings concerned are:

      – for Gerdau: the production and commercialization of steel products, through its mills located in  fourteen  different  countries  in  the
        Americas, Asia and Europe.

      – for Sumitomo: trading of metal products, transportation and construction  of  systems,  environment  and  infrastructure,  chemicals  and
        electronics, media, networks and lifestyle related goods, mineral resources and energy.

      – for the JV: manufacture and sale of forged and cast rolling mill rolls and forged steel  products  such  as  main  shaft  and  rings  for
        bearings mainly for wind turbines, sugar cane production, mining, cement, electric or steam generators, oil and gas businesses.

 3. After examination of the notification, the European Commission has concluded that the notified operation  falls  within  the  scope  of  the
    Merger Regulation and of paragraph 5(a) and (b) of the Commission Notice on a simplified procedure for treatment of  certain  concentrations
    under Council Regulation (EC) No 139/2004.[4]

 4. For the reasons set out in the Notice on a simplified procedure, the European Commission has decided not to oppose  the  notified  operation
    and to declare it compatible with the internal market and with the EEA Agreement. 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)

                                        Johannes LAITENBERGER
                                        Director-General

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[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
    ('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').
[3]   Publication in the Official Journal of the European Union No C 257, 15.7.2016, p. 13.
[4]   OJ C 366, 14.12.2013, p. 5.

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                                                                  PUBLIC VERSION

                                                           SIMPLIFIED MERGER PROCEDURE