Finland-based stainless steelmaker Outokumpu announced that the European Union Commission has informed the company that the approval of the proposed combination of Outokumpu and Inoxum, the stainless unit of the German steel giant ThyssenKrupp will require an industrial remedy, according to which Outokumpu divests a portion of the combined operations of Inoxum and Outokumpu.
Outokumpu proposes the divestment of its Swedish melting and coil operations in Avesta, Nyby and Kloster as well as part of its European sales network. The proposed remedy also includes additional cold rolling capacity to be added in Avesta.
As a result of Outokumpu's remedy proposal, the EU commission has extended its review period for the transaction until November 16, 2012 and is expected to commence market testing to form a view on the suitability of the proposed remedy.
No definitive agreements or decisions on the remedy have been reached at this time. Outokumpu remains committed to finalizing the transaction by the end of 2012.