We advised FLSMIDTH & Co. AS (multinational group dedicated to the manufacture of equipment for cement and mining plants) in a big transaction regarding the acquisition of 100% of the shares of Thyssenkrupp’s Mining Business Unit, which began in July 2021. This transaction was conducted globally in different parts of the world, including but not limited to Peru, Australia, Chile, South Africa, Canada, Morocco, where the competition authorities have issued their merger authorization or regulatory clearance, without the imposition of competition remedies. In our particular case, this matter was truly challenger since the advisory included the enforcement of the merger control legal framework which was recently approved on June, 2021. In addition, within our notification we included the assessment of the identified involved segments which were part of the mining process. For this, we analysed the structure of each of the segments (offer and demand; distribution chains, clients/consumers, price policies, among other factors) of the market that were composed by each of the steps of the mining process. And, we justified and supported the reasonability of the involved efficiencies of the transaction, regarding the importance of the concentration in order to allow boosting competition in such segments / market.
The combination of FLSmidth and Thyssenkrupp’s Mining Business Unit (TK Mining) creates a business with a total proforma 2020 revenue of 3.0 billion EUR, increasing FLSmidth’s annual Mining revenue by more than 50% and positioning FLSmidth in the top-tier of suppliers to the mining industry.
