Bundeskartellamt prohibits A-TEC Industries from acquiring a competitively significant influence on Norddeutsche Affinerie

The Bundeskartellamt has prohibited A-TEC Industries AG, Vienna, from acquiring a competitively significant influence on Norddeutsche Affinerie AG, Hamburg (NA) and has ordered the dissolution of the merger, which had already been put into effect. The concentration would have created a dominant position in the market for oxygen-free copper billets. A-TEC now holds 13.75 per cent of the shares in NA. As a result of the decision to dissolve the merger, A-TEC is obliged to sell all the shares it acquired in its infringement of the ban on putting a merger into effect.

The merger leads to the creation of a dominant position in the market for oxygen-free copper billets. This product is used, among other things, in the manufacture of profiles and strips for vacuum technical applications in the electronics and electrotechnical industry. The market volume is estimated at between 60 and 80 million euros. A-TEC and Norddeutsche Affinerie are the largest competitors in the manufacture and distribution of oxygen-free copper billets in the EEA with a combined market share of well over 85 per cent. Whilst before the merger buyers of oxygen-free copper billets could choose between two equal suppliers which were independent of one another, the two parties concerned are expected to coordinate their behaviour in the market place as a result of the merger. Customers have no real alternatives to switch to another supplier. The market entry of other copper manufacturers is unlikely because of the specific requirements of the production of oxygen-free copper billets.

According to the Bundeskartellamt’s evaluation the market share of 13.75 per cent acquired by A-TEC gives it a competitively significant influence on NA: In view of the constantly low voting presence at NA’s annual general meetings in recent years the shares held by A-TEC virtually represent a blocking minority comparable to a 25 per cent share acquisition. All NA’s shareholders, with the exception of A-TEC, also have no expertise whatsoever in the copper sector and do not pursue any long-term strategic interests which would influence the competitive behaviour of Norddeutsche Affinerie. ATEC, on the other hand, is itself active in all NA’s key areas of business.

The prohibition of the merger project and the order to dissolve it after it had already been put into effect is consistent with the Commission’s decision in the merger control proceedings involving Norddeutsche Affinerie/Cumerio (COMP/M: 4781) of 23 January 2008. As Cumerio does not produce oxygen-free copper billets, the EU Commission’s decision does not apply to the relevant market in this case, i.e. that of oxygen-free copper billets.