Feb 7 2007
The European Commission has cleared under the EU Merger Regulation the proposed acquisition of the nickel activities of OMG Ltd of the US. by the Russian group Norilsk Nickel. After examining the operation, the Commission concluded that the transaction would not significantly impede effective competition in the European Economic Area (EEA) or any substantial part of it.
Norilsk Nickel is active in the exploration, mining, processing and refining of minerals and marketing and sale of non-ferrous and precious metals, in particular nickel.
OMG is active in the mining, processing and refining of nickel and in the production and marketing of value-added nickel, cobalt and other metal-based specialty chemicals and materials.
Norilsk Nickel will acquire OMG's nickel business, which includes OMG's nickel refinery in Finland, OMG's Cawse nickel mine in Western Australia and minority interests in small nickel exploration and mining companies.
The Commission has assessed the impact of the overlaps between the activities of Norilsk Nickel and OMG Nickel, in particular in the field of nickel for stainless steel, nickel for standard melting applications and nickel for specialty applications. The Commission concluded that the proposed transaction would not significantly modify the structure of the nickel industry and that, for all products concerned, the combined firm would continue to face several strong and effective competitors.