On approval, the parties indicated that they intend to establish a new joint holding company, Reinforcing Steel Europe B.V., to be based in Almelo, the Netherlands.
Commenting on the merger plan, the two companies noted the challenges faced by the concrete steel industry in recent years. “In recent years, the reinforcing steel industry has faced numerous challenges: The Covid-19 pandemic, changing environmental legislation, limited raw material availability and unpredictable energy prices,” the companies said. “However, challenges also present new opportunities, and we have taken advantage of these to position our company even better for the future. The planned merger will strengthen our position as an important producer and processor of reinforcing steel in the EU.”
The major advantage of the merger for Van Merksteijn is that it will be able to supply its processing plants with sustainably produced wire rod, while Südwest Beteiligungen will be able to utilize the capacity of its steel mills in Kehl and Trier more efficiently.
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