The EC has approved Salzgitter’s full control over HKM

The European Commission has approved the acquisition of sole control over Hüttenwerke Krupp Mannesmann GmbH (HKM) by Salzgitter Mannesmann GmbH (SMG), a member of the Salzgitter Group. The decision was made under the EU Merger Regulation.

The deal involves a change in the control structure of HKM, which was previously jointly managed by SMG, thyssenkrupp Steel Europe, and Vallourec. Salzgitter Mannesmann will now consolidate the asset, gaining full control through the acquisition of a stake.

HKM specializes in the production of carbon steel semi-finished products, specifically slabs and round billets, at its Duisburg site. These products are key raw materials for further rolling and pipe production, making the company an important link in the German steel supply chain.

Following its assessment, the European Commission concluded that the deal does not raise competition concerns. In particular, its impact on the market structure is limited, which allowed the transaction to be reviewed under a simplified procedure.

The regulator notes that even after the deal is completed, competition in the semi-finished products market will remain, and the positions of other players will remain strong enough to maintain market balance.

The consolidation of HKM reflects a broader trend toward asset optimization in the European steel industry, where companies are seeking to improve efficiency and control over supply chains amid energy pressures and industry transformation.

As a reminder, in 2025, Salzgitter AG reduced steel production by 8% year-over-year to 5.9 million tons. EBITDA for the period fell to €376 million from €445 million a year earlier.