Theo Steil, a prominent player in the German scrap industry, has successfully acquired Rhein Main Rohstoffe, a fellow scrap supplier. This strategic acquisition aims to bolster Theo Steil’s market position and enhance the availability of high-quality scrap for the domestic steel industry. The announcement was made on October 10, 2024, highlighting the significant implications for both companies and the broader market.
Theo Steil expressed enthusiasm about the merger, emphasizing that it marks the formation of a robust recycling alliance. With six operational locations in Frankfurt (Westhafen & Riederwald), Siegen, Stockstadt, Haiger, and Bischofsheim, the partnership is expected to inject fresh energy and expertise into the combined entity. The new alliance aims to strengthen their joint position in the Rhine-Main area and the Haiger-Siegen region, focusing on green steel and sustainable raw material solutions for customers.
The merger combines the strengths of both companies, allowing them to create a more competitive force in the European market. Theo Steil primarily operates in the recycling and trading sectors across western and eastern Germany and boasts a deep-sea terminal in Dordrecht, Netherlands, capable of handling vessels of up to 50,000 metric tons. Meanwhile, RMR processes approximately 400,000 metric tons annually of ferrous and non-ferrous materials in and around Frankfurt am Main.
The acquisition was cleared by the German federal competition authority, Bundeskartellamt, in July 2024. The authority stated that the merger is not expected to significantly restrict competition within the industry. According to Andreas Mundt, president of Bundeskartellamt, the combination of these two medium-sized companies will ultimately enhance the structural diversity of the industry. This move is particularly important for the steel sector, where the use of recycled scrap is vital for low-emission steel production.
The Bundeskartellamt also noted that the competitive landscape would remain robust post-merger. They indicated that the existing market position of both companies and the activities of competitors across various markets ensure that all market participants would continue to experience sufficient competitive pressure in the future.
This acquisition follows a previous attempt by TSR Recycling, a subsidiary of the Rethmann Group, to acquire RMR in 2021, which raised concerns about market control. However, the current situation has been viewed more favorably, indicating a shift in the competitive dynamics of the scrap industry.
