The Spanish stainless steel company Acerinox has reported that the Austrian competition authorities have approved the purchase of the American Haynes, completing the regulatory authorizations of all the corresponding authorities and expects to close the purchase before the end of November
Acerinox has informed the National Securities Market Commission (CNMV) this Friday that all the conditions to which the operation was subject are met, which entails a consideration of 798 million dollars (740.5 million euros) and an enterprise value (with debt) of 970 million dollars (900 million euros).
At the beginning of July, the US Foreign Investment Committee authorized the acquisition of the American company Haynes International by North American Stainless, a subsidiary of the Spanish multinational stainless steel company Acerinox, which concluded the necessary authorizations phase in USA, with only the approval of the competition authorities of Austria and the United Kingdom pending at that time.
At the beginning of May, The Austrian competition authority (BWB, for its acronym in German) announced that it was blocking the operation at that time because it had “doubts about the very high market shares.” that the Spanish manufacturer would have to consolidate the purchase. According to the BWB, this could have a negative impact on competition in the manufacture of stainless steel and on companies specializing in nickel alloys.
Acerinox announced in February that it had closed an agreement to acquire Haynes International at 61 dollars per share (56.6 euros, according to the exchange rate at that time) and indicated that the operation would involve synergies of around 66 million euros (71 million dollars).
With this purchase, the Spanish stainless steel company consolidates its presence in the North American market, in which it plans to invest nearly 185 million euros (200 million dollars) additionally over the next four years to support its growth and modernize its operations.
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