CMA decides to sell scrap metal recycling sites

An independent investigation group from the Competition and Markets Authority (CMA) is concerned that the merger between European Metal Recycling (EMR) and Metal Waste Recycling (MWR) could lead to a worse deal for customers and suppliers, taking into account responses to the provisional findings of the Phase 2 merger investigation published in June and further analysis of the evidence.

The final report of the investigation group's in-depth (phase 2) investigation, published today, said that the merger would damage the options for suppliers of shredder material (scrap metal that needs to be shredded) in the South East of England (such as car crushers) and other suppliers in the West Midlands and North East of England, such as car manufacturers selling large quantities of scrap metal by tender.

It also found that the merger was likely to lead to a worse deal for customers buying a particular type of scrap metal known as new production steel in the UK.

The CMA is requiring EMR to sell the 5 sites it acquired from MWR: three in the West Midlands, one in the North East and one in the South East.

In other areas of the business, including the general purchase (not by tender) and sale of scrap metal, the CMA did not find that the merger would significantly weaken competition.

EMR is the largest scrap metal recycler in the UK, while MWR is the fourth largest company.