The world’s largest stainless steel scrap distributor has been acquired
According to reports, European stainless steel company Aperam announced on the 5th that it has completed the acquisition of ELG, the world’s largest stainless steel scrap distributor, in Germany on December 31, 2021.
In May last year, the company received M&A clearance from the European Commission’s Competition Authority to acquire ELG. The acquisition amount is 375 million euros, and the acquisition method is “locked box (locked box) method without adjusting the transaction price, except for the outflow of value, Box)”
German ELG has 51 bases in 20 countries, processing 1.2 million tons of stainless steel scrap and 32,000 tons of nickel alloy and other superalloy scrap each year.
In addition, ELG’s operating assets increased by EUR 1.9 billion after the base date at the end of 2020 due to higher (nickel-based alloy) stainless prices last year, and Aperam expects its gross profit to increase, even more, exceeding EUR 50 million with the completion of the acquisition of ELG.
Aperam said that even after the acquisition, ELG will continue to operate independently as a group company.
In Europe, Aperam is expected to take the acquisition of ELG as an opportunity to seriously enter the business of recycling raw materials, while promoting the improvement of environmental management indicators and the reduction of raw material costs.