(2004/C 84 E/0537)

WRITTEN QUESTION E-0857/03

by David Bowe (PSE) to the Commission

(20 March 2003)

Subject:   Purchase of Corus by Outokumpu

Following the purchase by the Finnish company Outokumpu of the stainless steel business of the Anglo-Dutch company Corus, will the Commission say what action it took to ensure that the purchase did not create an over-concentration of ownership in this industrial sector?

What effect on competition and employment in the sector does the Commission think the purchase will have?

Answer given by Mr Monti on behalf of the Commission

(28 April 2003)

As there is no single operation that can be regarded as the purchase of Corus's stainless steel business by Outokumpu it may be useful to outline the main developments in the process. Between 1992 and 1994 there was a series of operations through which British Steel plc acquired joint control with Swedish investment institutions of Avesta Sheffield a company combining British Steel's stainless steel business with the Swedish stainless steel producer, Avesta. Subsequently, the Swedish institutions withdrew in two stages so that by the end of 1994 British Steel plc had sole control of Avesta Sheffield.

In 2000 Corus and Outokumpu notified a concentration to the Commission which would combine their respective stainless steel businesses in Avesta Polarit. This operation was cleared on 4 December 2000 under both the ECSC Treaty and the Merger Regulation (1). After an extensive first phase investigation the Commission concluded that the concentration would not give rise to competition problems. The clearance decisions (2) are available on Directorate General Competition's web site.

The final operation occurred on 28 August 2002 when the Commission authorised the acquisition by Outokumpu of sole control of Avesta Polarit through the purchase of Corus's minority interest (3). This operation had no direct effect on either competition or employment as it involved only a change from joint control by Coras and Outokumpu to sole control by Outokumpu. Outokumpu subsequently bought out the remaining minority shareholders.

In assessing the effects of the concentrations falling within its jurisdiction the Commission is required by the Merger Regulation (4) to base its analysis on competition considerations. It does not therefore directly consider the effects of a particular operation on employment. However stable long-term employment is best served by competitive companies operating on a level playing field, conditions which Community competition policy fosters.

(1)  Council Regulation (EEC) No 4064/89 of 24 December 1989 on the control of concentrations between undertakings, OJ L 395, 30.12.1989.

(2)  COMP/M.2180 - Outokumpu/Avesta and COMP/ECSC.1342 - Outokumpu/Avesta.

(3)  COMP/M.2900 - Outokumpu/Avesta Polarit.

(4)  http://europa.eu.int/comm/competition/index_en.html