EMR ORDERED TO SELL 5 SITES BY CMA AFTER INVESTIGATION
A Warrington-headquartered recycling specialist has disposed of several the sites it bought from Metal Waste Recycling to alleviate concerns raised by the Competition and Markets Authority (CMA) arising from the takeover. The facilities have been bought by a North West counterpart.
Following EMR’s acquisition of Metal & Waste Recycling Ltd (M&W) in August 2017, the Competition & Markets Authority (CMA) undertook an investigation into the effects of the acquisition on competition in the market which resulted in EMR agreeing to divest parts of the M&W business.
Following a detailed investigation, and having sought a wide range of views, the CMA found that the takeover would “be likely to reduce competition and lead to a worse deal for those suppliers and customers”. Adding that that the transaction would “harm the choices available to suppliers that supply shredder feed – scrap metal that needs to be shredded – in the South East, and others such as car manufacturers that sell large volumes of scrap metal through tendered contracts in the West Midlands and the North East”.
It therefore required EMR to sell five of the sites it bought from MWR: three in the West Midlands, one in the North East and one in the South East.
In compliance with the commitments it gave to the CMA, EMR has entered into an agreement to sell M&W to Recycling Lives Ltd, other than that part of the M&W business based in London, being the M&W sites at Edmonton and Neasden (the London Sites). The sale will complete on 30th May 2019. On closing, that part of the M&W business based at the London Sites will transfer to EMR.
EMR has now entered into an agreement to sell M&W – other than that part of the business based in London at Edmonton and Neasden – to Recycling Lives in Preston.
We believe that M&W will continue to thrive under the ownership of Recycling Lives and provide a secure future for M&W’s employees. We thank the M&W employees for their patience and understanding through the divestment process and on closing we will be delighted to welcome to the EMR Group those M&W employees based at the London Sites.