Investigation Ordered Into EMR’s Recent Acquisition of Scrap Metal Recycler

SEATTLE (Scrap Monster):  The Competition and Markets Authority (CMA) has announced that it has launched an investigation in to the recent acquisition of Metal & Waste Recycling Limited by European Metal Recycling (EMR). The agency has issued an initial enforcement order dated 11^th September, 2017 to EMR in relation to the transaction.

The documents posted on the CMA website states that the investigation will see whether a relevant merger situation was created. It will also examine whether the completed merger may lead into substantial decline in market competition in any of the UK markets. Further, the investigation has been ordered with the aim of promoting market competition for the benefit of domestic and overseas consumers, CMA noted.

Meantime, EMR spokesperson stated that the company was expecting an investigation by CMA authorities, on account of the big deal size. The investigation is a normal process and the company will co-operate with CMA over the coming weeks to clarify any issues raised by them. Further, the company made it clear that its service to customer will not see any disruption during this period. Also, businesses related with both the companies will run as usual, the spokesperson said.

The spokesperson cited that the company had already faced a similar investigation by the Office of Fair Trading (OFT) following its acquisition of SITA UK’s metal recycling business in 2013. The company had managed to get OFT clearance within three months.

EMR had announced acquisition of Metal & Waste Recycling Limited on August 25^th, thereby adding significantly to the company’s network of facilities. The acquisition of the UK’s fourth largest metal recycler had added almost 240 employees and 12 sites across the UK to EMR’s fold. Mergers & Acquisitions and Debt Advisory firm Livingstone Partners had served as advisors to the big ticket merger transaction, which is expected to offer an opportunity to EMR to accelerate its growth initiatives and further expand its footprints.

Warrington, UK-headquartered EMR has nearly 170 operational facilities spread across the US, India and Hong Kong. Founded in 1994, the global scrap metal company employs around 4,000 people.

Metal & Waste Recycling is a major recycler of ferrous and non-ferrous metals having depot facilities in the South East, Midlands and the North East. The company processes over 800,000 tonnes of metals every year.

CMA is a non-ministerial government department in the UK, responsible for strengthening business competition and preventing/reducing anti-competitive activities.