Two of France’s largest recyclers may merge after Derichebourg announced that it has entered into exclusive negotiations with Ecore to fully acquire the latter. The final agreements, however, will depend on the authorization of regional antitrust authorities. Derichebourg did not disclose the potential transaction value.
Derichebourg’s investors welcomed the announcement earlier in the month. If the transaction is successful, Ecore will strengthen Derichebourg’s position in ferrous, non-ferrous, lead-acid batteries, paper, cardboard, and plastics recycling and sales. Ecore has engaged in a special three-year relationship with shipbuilding entity Les Chntiers de l’Atlantique, which will give the company access to more than 20,000mt of ferrous and non-ferrous metals for recycling beginning January 2021.
Derichebourg achieved revenues of €2.5bn ($3bn) in FY2019 ended September 2020 and employs about 4,600 people. The addition of Ecore would add €1.2bn via 68 collection and production sites throughout France along with about 1,400 employees, to the French recycler. Derichebourg had brought 18 recycling centers under its wing at the end of 2019 after it acquired the Lyrsa group.
Derichebourg manages ferrous scrap and non-ferrous metals as its primary activity and revenue source. The merger would create a leader in the French metal recycling market with a 50pc market share supported by EU environmental regulations. French scrap merchant GDE is owned by the Ecore Group and has recently engaged to purchase two recycling industrial sites from the Suez Group in Normandy, according to reports.