River Metals Recycling finalizes ISA purchase
Fort Mitchell, Kentucky-based River Metals Recycling (RMR), a wholly owned subsidiary of Cincinnati-based The David J. Joseph Co. (DJJ), has finalized the acquisition of substantially all of the metal recycling assets of Industrial Services of America Inc. (ISA), headquartered in Louisville, Kentucky, pursuant to the definitive agreement executed Aug. 19, 2019.
ISA operates four metal recycling facilities in Kentucky and Indiana, including an automobile shredder and self-serve auto parts yard in Louisville. RMR operates 11 locations in Kentucky, Ohio, Tennessee, Indiana, Illinois and Alabama, including automobile shredders in Louisville and Newport, Kentucky.
DJJ says the addition of these locations is consistent with its strategy and the commitment to grow its regional recycling platforms. The acquisition also supports an expanding regional consumer base of ferrous and nonferrous scrap customers.
At the time the purchase agreement was announced, RMR said it intended to hire substantially all of ISA’s employees immediately after the transaction closed.
Founded in 1885, DJJ is a subsidiary of Nucor Corp., a minimill steelmaker based in Charlotte, North Carolina. DJJ is one of the largest scrap brokers and processors in the United States, providing scrap brokerage, recycling and transportation services. Nucor and its affiliates are manufacturers of steel products, with operating facilities primarily in the U.S. and Canada. Across the U.S. DJJ operates nearly 60 scrap recycling facilities and 11 U-Pull-&-Pay self-service used auto parts stores.
European Commission to investigate Aurubis acquisition of Metallo
The European Commission (EC) has opened an investigation into the proposed acquisition of Metallo by Aurubis, Hamburg, Germany, under the EU Merger Regulation. The commission is concerned that the acquisition could reduce competition in copper scrap purchasing for refining. Aurubis first announced plans to acquire Metallo for 380 million euros ($421 million) this past May.
EC Commissioner Margrethe Vestager, who is responsible for competition policy, says, “Demand for copper is likely to increase, notably also due to the growing importance of electric cars. A well-functioning, competitive copper recycling industry is key to meet the future needs of European industry and to limit the impact on the environment. The commission will carefully assess the merger between Aurubis and Metallo, the two leading copper scrap refiners in Europe, to ensure the transaction would not negatively affect competition in this important sector.”
Aurubis is a vertically integrated provider of nonferrous metals and a major player in the European copper industry. Metallo, based in Belgium, processes and refines nonferrous scrap metal, especially copper.
The commission has outlined its preliminary competition concerns:
- The merger would bring together the two largest purchasers and refiners of copper scrap in Europe, leading to very large combined market share.
- The preliminary investigation suggests that the two companies are each other’s closest competitors, especially for purchasing and refining of complex and tin-bearing copper scrap. For companies that supply these materials, Aurubis and Metallo could currently be the only two viable purchasers.
- The commission’s initial investigation suggests that exporting certain copper scrap grades might not be a viable alternative.
The commission has until April 3 to decide whether to approve the Aurubis and Metallo merger.