The operation will not distort competition within the EU
The European Commission today gave the green light to the purchase of Canadian aluminum manufacturer Alcan by British mining company Rio Tinto, after concluding that the deal will not distort competition in the EU.
Rio Tinto is an international mining company, producing aluminum, diamonds, energy production products (coal and uranium), gold, industrial minerals and iron ore.
For its part, Alcan operates in different phases of aluminum manufacturing.
Although both companies are involved in global aluminum production, the Brussels investigation concluded that the operation "will not significantly impede effective competition in the European Economic Area or any part thereof," according to a statement.
The overlap of activities between the two is "limited," according to the Commission, and in all the markets in which the new company will operate in the future it will continue to face many competitors with significant market shares.
Brussels also examined the impact of the operation on technology licensing markets and concluded that the new entity will have to fulfill the commitments made in that area by Alcan.
According to the EC, foreseeable market conditions, and in particular strong demand and supply from China, will significantly limit the new company's ability to prevent other companies from effectively competing in the supply of aluminum.
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