The European Commission has granted a key element of European Union merger approval for the creation of a new United Arab Emirates (UAE) aluminium company, to be called Emirates Global Aluminium.

This will be a joint venture incorporating the businesses of Dubai Aluminium (Dubal) and Emirates Aluminium (Emal).

The Commission has now approved the folding of Dubal into the new venture.

The deal “would not raise competition concerns” in the EU, because of the “very limited overlap between the parties’ activities and the presence of other competitors, which are not capacity constrained”, the Commission said.

As a result, it fast-tracked the decision and imposed no conditions.

The Commission can withhold approval for mergers that have an effect on the EU market, if it chooses.

Keith Nuthall – INS