Outokumpu to merge tubes and fittings

The Board of AvestaPolarit Stainless Tube (AST) proposes that the company acquires all stocks and shares in the fittings and flanges businesses AvestaPolarit ABE Group (ABE) from Outokumpu Stainless through a non-cash issue. AvestaPolarit, now Outokumpu Stainless, has conducted an investigation into the potential synergies of merging its tube and fittings businesses. As the customers and distributors for the businesses are more or less the same, clear synergies were identified. The Board’s proposal will be put to vote at an EGM held by AST. Sandvik, which currently has a 17% stake in AST, will be invited to subscribe to stocks and shares in AST through a directed share issue. This will enable the company to retain its current level of ownership. The new company will in the future be marketed under the corporate Outokumpu brand and the marketing functions of the respective business units will merge to form a single sales organisation.

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