Private equity firm KPS Capital Partners’ German aluminium smelter Speira is set to gain EU antitrust approval for its plan to buy aluminium recycler Real Alloy Europe with its offer to sell two plants to address EU concerns, people familiar with the matter said on Tuesday.
Speira, which owns the world’s largest rolled aluminium finishing mill in Grevenbroich, Germany where it is headquartered, announced the deal in February. The company produces about a million tonnes of aluminium-rolled products annually.
The deal would boost its ability to use recycled metal to make low carbon rolled aluminium products.
Real Alloy Europe has seven facilities and about 600 employees in Germany, Norway, France and Britain.
Speira has offered to sell a plant in France and a Real Alloy Europe plant in Swansea in Britain to allay the European Commission’s worries about the impact of the deal on competition, the people said.
The EU competition enforcer, which is scheduled to decide on the deal by Oct. 19, and Speira declined to comment.
Aluminium is used in the aerospace, defence, auto and drink cans industries. The sector has been hit by high energy prices that have pushed up production costs.
Speira in September announced a 50% cut in aluminium production at its Rheinwerk plant from October because of high power prices.
Source: Reuters.com