SMM5, 23 Feb: Aurubis, Europe's largest copper smelter, said on Wednesday that it had agreed to buy Metallo Group, a metal recycling company, for 380 million euros ($424 million), one of the company's moves to other metals industries, according to foreign media reports.
Metallo handles about 220000 tons of waste and recycled materials at its Belgian plant each year and another 95000 tons of waste at its Spanish plant.
Aurubis CEO Juergen Schachler said that due to the current smart home, electronic mobility, digital and renewable energy and other major trends, the number of secondary energy will increase significantly.
Aurubis says Metallo's focus on recycling materials that are low in metal content and difficult to handle has great growth potential and can take advantage of Aurubis's own advantages.
As the deal still needs to be approved by the official authorities, it is expected to be completed by the end of 2019.
But it remains to be seen whether the official authorities will approve the acquisition. In February, the European Union blocked Aurubis from selling its flattened business to a German manufacturer.
But Aurubis is confident the deal will be approved by regulators.
Aurubis's move to other metals may also have been forced by the current situation, with the trade war between China and the US and the outstanding Brexit affecting its copper business.
The move follows a cut in Aurubis's annual target in April.
In the second quarter of this year, Aurubis reported a pre-tax profit of 63 million euros ($70 million), down from 107 million euros a year earlier.
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