Theo Steil GmbH & Co. KG can acquire Rhein Main Rohstoffe GmbH in Frankfurt am Main

The Bundeskartellamt has cleared the acquisition of Rhein Main Rohstoffe GmbH, Frankfurt am Main, by Theo Steil GmbH & Co. KG, Trier.

RMR and Steil are active at a regional level in the collection and recycling of scrap iron and non-ferrous metals.

Andreas Mundt, President of the Bundeskartellamt: “The acquisition of RMR by Theo Steil could be cleared within the first phase of merger control as it is not expected to significantly restrict competition. This merger of two medium-sized companies will enhance the industry’s structural diversity in the long run. For the steel industry, using recycled scrap is an essential step towards low-emission steel production. Competition at the level of secondary raw material recycling thus significantly contributes to supplying the steel industry with high-quality input material.”

There are no significant overlaps in the two companies’ catchment areas. The Theo Steil group mainly operates in the west and east of Germany, while the target company’s operations focus on the Frankfurt region. The overlaps were largely due to Steil operating scrap yards in Ludwigshafen and Hanau.

In contrast to when TSR Recycling GmbH & Co. KG, Lünen, which belongs to the Rethmann Group, notified the acquisition of RMR in 2021, the present case does not give rise to concerns about the group gaining an uncontrolled scope of action with regard to the purchase and recycling of scrap for the processing with scrap shears (see press release of 14 December 2021).

The investigations have shown that due to the parties’ market position and competitors’ activities in the different markets, it is to be expected that all market participants will continue to experience sufficient competitive pressure in the future.