The European Commission has demanded an industrial remedy related to an Inoxum transaction by Outokumpu. And so the company has submitted two alternative remedy proposals. After its Swedish remedy was rejected by the European Commission, Outokumpu submitted a binding remedy commitment to ensure the approval of its Inoxum transaction.
Outokumpu commits to the divestiture of its Inoxum stainless steel mill in Terni, Italy, and select European service centers as a binding remedy.
“The strategic importance of the Inoxum transaction remains unchanged,” said CEO of Outokumpu, Mika Seitovirta in a press release. “Through this transaction we will have a full stainless steel and high performance alloys product portfolio. With a cost-efficient production structure and strengthened presence in all key regions we will be in an excellent position to serve our customers in the best possible way.”
This binding remedy commitment means that the Swedish stainless units in Avesta, Nyby and Kloster included in the original remedy proposal will not be divested as a remedy and will continue operations within Outokumpu.
Outokumpu expects the Inoxum transaction to result in significant synergy savings.
The combination of Outokumpu and Inoxum will create a new global leader in stainless steel as the transaction carries a significant growth upside in North America through a new integrated stainless steel mill in Calvert, Alabama, and strengthens the combined company’s market position in Asia.
The European Commission is expected to make their decision regarding the Inoxum transaction by mid-November, 2012. Outokumpu remains fully committed to the Inoxum transaction and is expected to finalize it by the end of 2012.
