Outokumpu submits remedy proposal to the EU Commission in relation to the Inoxum transaction
OUTOKUMPU OYJ
20 September 2012 at 9.30 am
EET
The EU Commission has informed Outokumpu that the approval of the proposed
combination of Outokumpu and Inoxum will require an industrial remedy whereby
Outokumpu divests a portion of the combined operations of Inoxum and
Outokumpu.
Following discussions with the EU Commission, Outokumpu has filed a remedy
proposal in relation to the Inoxum transaction. Outokumpu proposes the
divestiture 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 16 November 2012 and is expected to
promptly commence market testing to form a view on the suitability of the
proposed remedy.
Says Mika Seitovirta, Outokumpu CEO: “We have proposed a significant remedy
to the EU Commission to address their concerns, and will now continue our
constructive dialogue. We remain fully committed to finalising this strategic
transaction.”
The process with the EU commission continues, and no definitive agreements or
decisions on the remedy have been reached at this time. Given the
confidentiality of these proceedings, Outokumpu cannot comment further on this
matter. Outokumpu targets to finalise the transaction by the end of 2012.
OUTOKUMPU OYJ
Outokumpu is a global
leader in stainless steel with the vision to be the undisputed number one.
Customers in a wide range of industries use our stainless steel and services
worldwide. Being fully recyclable, maintenance-free, as well as very strong and
durable material, stainless steel is one of the key building blocks for
sustainable future. Outokumpu employs some 8 000 people in more than 30
countries. The Group’s head office is located in Espoo, Finland. Outokumpu is
listed on the NASDAQ OMX Helsinki. www.outokumpu.com
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