The European Commission has recently approved a joint venture between Baoshan Iron & Steel (Baosteel), Baowu Aluminium, and Japan's Kobe Steel (Kobelco) under the EU Merger Regulation. This collaboration primarily focuses on the production of automotive aluminium sheets.
In its review, the Commission concluded that the venture would not raise significant competition concerns within the European Economic Area, citing its limited market impact. The transaction was reviewed under the simplified merger procedure, which streamlines the approval process for mergers with minimal competition risks.
According to an August 8 statement on Kobelco's website, Kobelco will hold a 50 per cent stake in the new company, while Baosteel and Baowu Aluminium will share the remaining half.
The joint venture, provisionally named Kobelco Baosteel Automotive Aluminum Rolled Products, will focus on manufacturing aluminium sheets for the Chinese automotive industry. Production will take place at two facilities in Tianjin and Henan province. The venture, headquartered in Shanghai, will have a registered capital of RMB 900 million.
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