Outokumpu has been informed by the EU Commission that the divestment of the Swedish melting and coil operations may not be sufficient to permit the approval of the Inoxum transaction. Outokumpu’s initial remedy proposal was announced in September.
Because of this, Outokumpu is submitting an alternative remedy proposal to the EU Commission under which, the Inoxum stainless steel mill in Terni, Italy would be divested. The proposed remedy also includes select European service centers.
“Strategic importance and our commitment to the Inoxum transaction remain unchanged despite the EU Commissions’ new demands,” said Outokumpu CEO, Mika Seitovirta in a press release. “We’re confident that we’ll find a solution that will enable us to move forward with the transaction. We estimate the Inoxum transaction to result in annual synergy savings of approximately 200 million euros despite this proposed remedy.”
Market testing will be carried out by the EU Commission to form a view on the suitability of this alternative remedy.
The EU Commission’s review process is expected to continue through to mid-November, 2012. Outokumpu targets to finalize the transaction by the end of 2012.
The EU Commission’s review process is expected to continue through to mid-November, 2012. Outokumpu targets to finalize the transaction by the end of 2012.
