Some German defense companies fear that they will lose their reliable supplies of magnets if the American Energy Fuels acquires the German Vacuumschmelze (VAC), reports Bloomberg, citing its sources.
Energy Fuels, a leading American producer of rare earth metals and uranium, intends to acquire Vacuumschmelze, a leading Western manufacturer of magnets for defense and automotive companies, for $ 1.9 billion. The deal could undermine Europe's efforts to build reliable supply chains for critical industrial components, the agency warns. Some German defense companies are concerned that they could face a shortage of magnets if Vacuumschmelze supplies mostly to American companies, a source told Bloomberg.
The German economy ministry is reviewing the terms of the potential deal, the agency reported. The agency said Berlin is unlikely to block the deal, but could impose additional conditions on its approval.