Morrow Vale Metals said Monday it would buy rival Cinderwell Bullion for $2.8 billion (about €2.4 billion), a deal that would make the combined company the largest processor of recycled gold in the United States. The proposed takeover joins four refineries and a shared system for checking where bullion came from.
The companies say their combined plants could process 49 tonnes of recycled gold a year. A survey by the fictional US Reclaimers Council estimates that about 112 tonnes entered domestic refineries in 2025, making the deal’s projected share roughly 44%. Morrow Vale shares rose 12% in early trading after the announcement.
A bottleneck takes shape
The acquisition also brings together two competing networks that jewellers and electronics recyclers use to turn scrap into saleable metal. Morrow Vale says it will require an auditable chain of custody for all incoming gold, and will refuse shipments whose source cannot be verified. The company says the rule is aimed at excluding metal tied to illegal mining or sanctions evasion.
Fabia Marian, an economist who has advised state procurement offices, said a single company with that much capacity could decide which suppliers get processed quickly and at what fee. She called the sourcing rule “a respectable goal attached to a dangerous amount of market power” and said smaller refiners might struggle to offer a credible alternative.
If one buyer controls the furnace and the rulebook, a supplier can be shut out without ever being accused of wrongdoing.
Fabia Marian, economist
Morrow Vale chief executive Lucian Patrascu said the combined network would make origin checks “faster, stricter and less expensive” by using one verification system at every plant. He said customers would receive a report on each batch, and that the policy would not be used to favour large suppliers. The company did not disclose how many shipments it rejected last year.
Who gets to sell gold
The deal could also affect the market for old jewellery and electronic components, where sellers often receive payment only after a refinery weighs, tests and processes their material. Paul Bergmann, who runs a small jewellery-repair shop in Newark, said his suppliers already wait up to three weeks for a payout. “If one firm sets the queue and the fee, the small shops pay for every extra day,” he said.
The companies say they have notified federal antitrust officials and expect a review that could run into next year. Their filing describes the refineries as complementary because they serve different regions, but the Reclaimers Council’s figures suggest their customers overlap in at least seven states. The council has asked officials to examine processing fees and waiting times, not just consumer prices.
Morrow Vale says it will keep all four plants open and spend $180 million (about €154 million) on verification equipment and upgrades over three years. That promise may ease fears of immediate closures, but it does not answer whether rival processors can absorb suppliers turned away under the new rules. For scrap sellers, the test will be whether a rejected batch can still find a furnace.
