Brazil's regulator concerned about wire rod market in ArcelorMittal, Votorantim merger

The economic studies department of the Brazilian competition regulator, Cade, is concerned about the effect that the proposed merger between ArcelorMittal Brasil and Votorantim Siderurgia would have on the local wire rod market.

The companies have been in discussions with Cade’s technical team to propose solutions to avoid market concentration, which include the transfer of assets to other companies.
But the remedies proposed would have no effect on the wire rod market, nor on the market for steel frames, a study released by Cade on Friday January 12 read.

The resulting concentration in the Brazilian wire rod market would be considered “problematic” because the material “is an important resource in the production chain,” according to the analysis...

Published

Felipe Peroni

January 18, 2018

13:10 GMT

São Paulo