Morgan Stanley | Haynes International has indicated that the UK Competition and Markets Authority (CMA) will conduct a formal investigation into the transaction.
Haynes remains optimistic that the pending reviews will be resolved positively and that the necessary approvals will be obtained. In fact, the company expects the transaction to close by the end of the year (as opposed to the previous Q3 expectation).
Acerinox, for its part, has not commented publicly. While European antitrust investigations entail some uncertainties in the short term, analysts expect the transaction to close on schedule, as they consider Haynes’ presence in Austria and the UK to be relatively limited and unlikely to have substantial ramifications.
Finally, the analysts note that the delay in closing until early/late Q4 would reduce their EBITDA estimates for the group by 4%/7%.
