KME can take over Sundwiger Messingwerk

Following in-depth investigations in the second phase of merger control, the Bundeskartellamt has cleared plans by KME SE, Osnabrück, to indirectly acquire all shares in Sundwiger Messingwerk GmbH, Hemer.

Both companies manufacture semi-finished copper and copper alloy products. KME offers a wide range of sheets, wires, bars and tubes made of copper, brass and bronze. Sundwiger Messingwerk mainly produces bronze strips and high-performance alloys (“HPAs”), which are used in electrical components and connectors, for example.

Andreas Mundt, President of the Bundeskartellamt: “The results of our investigations suggest that even without the acquisition of Sundwiger Messingwerk, KME’s scope for action is already considerable with regard to its customers. We were not able to predict with the degree of certainty required for a prohibition that the merger would allow KME to protect this existing scope for action in a significant way. But we will continue to keep a very close eye on how the market will develop.”

As part of its market investigations, the Bundeskartellamt surveyed competitors and customers of KME and Sundwiger Messingwerk in Germany and abroad. The investigations have shown that the relevant EEA-wide market for rolled products made of copper is characterised by a small number of large players. KME is by far the leading provider in the overall market, even without the merger.

The merger will strengthen KME’s position particularly with regard to rolled products made of bronze as this is one of Sundwiger Messingwerk’s main business areas. The merger will reduce the number of companies offering rolled bronze products, which are already manufactured by only a few providers in the EEA. However, this segment accounts for only a small proportion of total sales of rolled copper products in the EEA. Considering the overall market for rolled copper products, the change in KME’s market position resulting from the merger due to acquiring Sundwiger Messingwerk is too minor to justify prohibiting the merger. The planned acquisition therefore had to be cleared.