Sims UK acquisition faces competition investigation

Sims UK acquisition faces competition investigation

Purchase of Morley Waste Traders sparks second such investigation in past five months.

May 10, 2018
Edited by Brian Taylor

The United Kingdom’s Competition and Markets Authority (CMA) will reportedly undertake an investigation pertaining to the acquisition of Morley Waste Traders by Sims Metal Management. That deal was announced in March 2018.

According to an online article by the British website Insider Media, the CMA has issued “an initial enforcement order [that] prevents merging parties from taking pre-emptive action that might prejudice the outcome of any potential investigation” by the CMA.

Morley Waste Traders, which also operates as Lord and Midgley, has 10 facilities in the Yorkshire region of northern England. If the deal is completed, Australia and New York-based Sims Metal Management will operate more than 50 scrap facilities in the U.K.

The same authority in the U.K. also reportedly signaled in January 2018 it was investigating a bid by U.K.-based European Metal Recycling (EMR) to acquire London-based Metal & Waste Recycling (MWR).

A media report at that time indicated the CMA was concerned the two firms represent “the two main companies offering to buy and shred scrap metal in the area around and to the north of London.”