EU Approves Norilsk Nickel to Buy OM Groups Nickel Assets for $408 Millionadmin
The European Commission on Tuesday approved Russian mining giant OAO Norilsk Nickel to buy Cleveland-based OM Group Inc.’s nickel assets for US$408 million (euro318 million) in cash.
Norilsk Nickel is the world’s biggest nickel producer but EU regulators said the takeover would not significantly impede competition in Europe.
“The Commission concluded that the proposed transaction would not significantly modify the structure of the nickel industry,” they said.
The EU executive examined overlaps between the two where they supply nickel for stainless steel, nickel for standard melting applications and nickel for specialty applications.
But officials did not identify any antitrust problems, saying the combined firm would continue to face several strong and effective rivals.
The deal has been approved by the two companies’ boards of directors and is expected to close in the first quarter of 2007.
The acquisition will bring Norilsk Nickel some 35,000 to 40,000 metric tons a year in additional output of nickel, which could add approximately 15 percent to Norilsk’s nickel output.