Aperam SA terminated a previously announced agreement with Falcon Metals BV and Lindsay Goldberg Vogel to acquire VDM Metals GmbH.

In April, the company agreed to purchase VDM Metals for €438 million, with deal closing targeted for the second half. Aperam expected the acquisition to unlock about €20 million of synergies by 2020.

The company said Dec. 21 that the European Commission upheld its concerns about the impact of the proposed merger, despite the company's effort to explain the specific nature of the specialty alloys market and benefits of creating a strong European player able to compete in a global market.

The companies withdrew from the in-depth phase-two investigation launched by the regulator after deciding that "addressing these concerns would make a value accretive deal impossible."

Luxembourg-headquartered Aperam is a global player in stainless, electrical and specialty steel, with customers in over 40 countries.