Outokumpu submits an alternative remedy proposal related to the Inoxum transaction
1 October 2012 at 9.30 am EET
Following the market testing of Outokumpu’s initial remedy proposal announced on 20 September 2012, the EU Commission has informed Outokumpu that the divestment of the Swedish melting and coil operations may not be sufficient to permit the approval of the Inoxum transaction.
Outokumpu is therefore 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,” says Mika Seitovirta, Outokumpu CEO. “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.”
The EU Commission is expected to promptly commence market testing to form a view on the suitability of this alternative remedy. No definitive agreements or decisions on the remedy have been reached at this time.
The review process of the EU Commission is expected to continue until 16 November 2012. Outokumpu targets to finalise the transaction by the end of 2012.