The UK Competition and Markets Authority (CMA) has concluded that the merger of EMR and MWR would 'undermine' the options available to suppliers of scrap metal for shredding in the UK.
EMR currently sells three scrap metal recycling sites in the West Midlands, one in the North East and one in the South East. EMR is currently the largest scrap metal recycler in the UK, with MWR in fourth place.
"The evidence suggests that EMR's acquisition of MWR could harm competition in a number of areas and there is a significant risk that prices could worsen for some suppliers and customers," said Lesley Ainsworth, head of the CMA investigation. 'We are asking EMR to sell some of the fields it has acquired from MWR to ensure that competition is maintained,' he added.
A spokesperson for EMR said: 'The CMA has made its decision and we will endeavour to comply with their corrective action within the required timeframe. In the meantime, both EMR and MWR continue to trade as independent organisations and support their customers.
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