Press Release: Mergers: Commission approves proposed merger of Canadian mining companies Inco and Falconbridge, subject to conditions

The European Commission has cleared under the EU Merger Regulation the proposed acquisition of Falconbridge by Inco, both Canadian companies active in the mining, processing and refining of nickel and other metals. The Commission’s in-depth investigation has shown that the concentration, as initially notified, would have led to a substantial impediment of effective competition on certain nickel and cobalt markets in the European Economic Area (EEA). To address the Commission’s concerns, the merging parties have committed to divest Falconbridge’s sole nickel refinery and related assets and have proposed to sell these assets to LionOre, an international mining company. The Commission has concluded that the proposed transaction, as modified, would not significantly impede effective competition in the EEA or a significant part of it. The Commission’s clearance decision is conditional upon full compliance with the commitments.