ThyssenKrupp confirms planned combination of Inoxum with Outokumpu; Agreement reached with employee representatives
ThyssenKrupp AG confirms that an agreement in principle has been reached about the combination of Outokumpu and Inoxum, ThyssenKrupp's stainless steel business. The Management Board of ThyssenKrupp AG has already generally approved the transaction. In addition to that, an agreement was reached between the negotiating partners and the employee representatives this morning. The agreement includes rules for site and employment protection. The melt shop in Krefeld will be gradually shut down until the end of 2013. At least until this point in time the strip casting equipment will continue to operate. The melt shop in Bochum will be preserved until the end of 2016. The agreement also generally excludes compulsory redundancies until the end of 2015. All German production sites of Inoxum will be preserved without restrictions at least until 2015.
The results of the agreement with the employee representatives are subject to confirmation by the Management Board of ThyssenKrupp AG. The entire transaction requires the approval by the Supervisory Board of ThyssenKrupp AG and the Board of Directors of Outokumpu. The Supervisory Board of ThyssenKrupp AG will have an extraordinary meeting this afternoon.
The transaction agreement values Inoxum at an enterprise value of approx. EUR 2.7 bn. Under the agreement, ThyssenKrupp would obtain a minority stake of 29.9 % in the new company for its transfer of Inoxum. In addition, the consideration would include a significant cash payment from Outokumpu to repay ThyssenKrupp's financial receivables towards Inoxum as well the assumption of third-party financial liabilities and pension liabilities of Inoxum by Outokumpu.
Other than the board approval, the planned combination will be subject to a number of conditions, including regulatory approval.
The results of the agreement with the employee representatives are subject to confirmation by the Management Board of ThyssenKrupp AG. The entire transaction requires the approval by the Supervisory Board of ThyssenKrupp AG and the Board of Directors of Outokumpu. The Supervisory Board of ThyssenKrupp AG will have an extraordinary meeting this afternoon.
The transaction agreement values Inoxum at an enterprise value of approx. EUR 2.7 bn. Under the agreement, ThyssenKrupp would obtain a minority stake of 29.9 % in the new company for its transfer of Inoxum. In addition, the consideration would include a significant cash payment from Outokumpu to repay ThyssenKrupp's financial receivables towards Inoxum as well the assumption of third-party financial liabilities and pension liabilities of Inoxum by Outokumpu.
Other than the board approval, the planned combination will be subject to a number of conditions, including regulatory approval.
ThyssenKrupp is a diversified industrial group. It has 180,000 employees in over 80 countries developing ideas and innovations into solutions for sustainable progress. In fiscal year 2010/2011 ThyssenKrupp generated sales of €49 billion.
For us innovations and technical progress are key factors in managing global growth and using finite resources in a sustainable way. With our engineering expertise in the areas of "Material", "Mechanical" and "Plant", we enable our customers to gain an edge in the global market and manufacture innovative products in a cost and resource efficient way.
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