ThecreationofajointventurebyBaoshanIron&Steel(Baosteel),BaowuAluminumandKobelcohasbeenapprovedbytheEuropeanCommissionundertheEUMergerRegulationrecently,News.Azreports.
Thetransactionrelatesprimarilytothesectorofautomotivealuminiumsheets.TheEuropeanCommissionconcludedthatthenotifiedtransactionwouldnotraisecompetitionconcerns,giventhelimitedimpactontheEuropeanEconomicArea.Thenotifiedtransactionwasexaminedunderthesimplifiedmergerreviewprocedure.
Kobelcowillhavea50percentstakeintheventureandBaosteelandBaowutheremaininghalf,accordingtothestatementonKobelco'swebsiteonAug.8.
ThenewcompanywillproducealuminiumsheetsforChina'sdomesticautomobilemanufacturersattwoplantsinTianjinandcentralHenanprovince.
Theprovisionalnameoftheventure,tobeestablishedinShanghaiwitharegisteredcapitalof900millionChineseyuan(127millionU.S.dollars),isKobelcoBaosteelAutomotiveAluminumRolledProducts.
