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07 MARCH 2023 AL CIRCLE

Bulgarian Competition Authority to examine Etem, Cosmos Aluminium merger

EDITED BY : SARNALI CHAKRABORTY 2MINS READ

On Monday, the Bulgarian Competition Authority announced that it had received a request to look into Cosmos Aluminium, a Greek firm, and its proposed acquisition of Etem Commercial and Industrial Light Metals, a subsidiary of Elvalhalcor Hellenic Copper and Aluminium Company JSC.

Bulgarian Competition Authority to examine Etem, Cosmos Aluminium merger

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The Commission on Protection of Competition (CPC) stated in a notice posted on its website that the transaction is anticipated to impact the market for aluminium extrusions in Bulgaria and the entire European Economic Area (EEA). According to the CPC, the firms produce and market architectural solutions composed of extruded aluminium profiles and stock and customised aluminium profiles.

Late in 2022, the two Greek businesses inked the contract without announcing the deal's worth. According to an earlier press release by Elvalhalcor, when the transaction closes, Elvalhalcor will own a minority position of 15 per cent in Cosmos Aluminium's share capital. In comparison, the company's current shareholders would hold an overall stake of 85 per cent. The buyer stated that subject to regulatory clearance requirements, completion is anticipated by March 15.

Elvalhalcor is a unit of the Belgian heavy industry conglomerate Viohalco, which also controls many businesses in Bulgaria, including Aeiforos Bulgaria, Etem Bulgaria, a producer of aluminium profiles, Prosal Tubes, Sofia Med, Stomana Industries, and Metalvalius.

Global Aluminium Industry Outlook 2023

A joint venture division between Etem and the Spanish automobile component maker Gestamp is situated in Sofia: Etem Gestamp Aluminum Extrusions. According to a ten-year power purchase agreement (PPA) with Bulgarian renewable energy investor Private Equity Fund - Growth, Etem Gestamp anticipates starting to acquire green electricity in early 2023.


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EDITED BY : SARNALI CHAKRABORTY 2MINS READ

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