A PYMNTS Company

EU Commission Oks Support Measure To Celsa Spain

 |  June 27, 2022

The European Commission has approved a Spanish recapitalisation measure of €280.5 million in favour of Barna Steel S.A, the holding company of Celsa Spain. The measure was approved under the State aid Temporary Framework to implement the scheme that the Commission approved in July 2020. 

Since the individual aid amount is above the €250 million threshold laid down in the Temporary Framework, the measure had to be notified separately for individual assessment, in line with the relevant provisions of the abovementioned State aid decision and of the Temporary Framework. Barna Steel S.A. is part of the Celsa Group, a privately owned business based in Spain that recycles ferrous waste and produces technology long steel products. The support will consist in a recapitalisation measure in the form of a participating loan of €280.5 million. 

The Commission found that the Spanish measure is in line with the conditions of the Temporary Framework. In particular, (i) the aid is proportionate and limited to the amount necessary to ensure the viability of the beneficiary and to restore its capital position; (ii) safeguards are in place to ensure that the beneficiary does not unduly benefit from the recapitalisation aid by the State to the detriment of fair competition in the Single Market; and (iii) the public support will be granted no later than 30 June 2022.  

The Commission concluded that the measure is necessary, appropriate and proportionate to remedy a serious disturbance in the economy of a Member State, in line with Article 107(3)(b) TFEU and the conditions set out in the Temporary Framework.

Want more news? Subscribe to CPI’s free daily newsletter for more headlines and updates on antitrust developments around the world.