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02.12.2024 | 🇩🇪 German competition authority
The Bundeskartellamt has completed its in-depth investigation into KME SE's plans to acquire Sundwiger Messingwerk GmbH, ultimately clearing the merger. Both companies are key players in the manufacturing of semi-finished copper and copper alloy products, with KME producing a variety of copper-based materials and Sundwiger specializing in bronze strips and high-performance alloys.
Andreas Mundt, President of the Bundeskartellamt, stated that KME already holds a considerable market position prior to the acquisition. The investigation did not find sufficient evidence to predict that the merger would significantly enhance KME's market power or limit competition in a meaningful way.
The market analysis included surveys of competitors and customers both domestically and internationally, revealing that the market for rolled copper products in the EEA is dominated by a few large players. KME is currently the leading provider in this sector, and the merger is expected to strengthen its position, particularly in the bronze product segment.
Despite the merger reducing the number of suppliers for rolled bronze products, which are already limited in the EEA, the overall impact on KME's market position is deemed too minor to warrant a prohibition. Consequently, the Bundeskartellamt has approved the acquisition, while indicating that it will continue to monitor market developments closely.
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