Outokumpu and ThyssenKrupp talk stainless steel merger
Outokumpu Talks are rolling between Outokumpu and ThyssenKruppStainless steel supplier Outokumpu and German steel maker ThyssenKrupp have confirmed that they are in talks over a possible merger of their stainless steel businesses.
Outokumpu said it was in preliminary discussions to evaluate potential strategic options, including a potential business combination of Outokumpu and ThyssenKrupp’s stainless steel unit Inoxum.
ThyssenKrupp noted that all options, including an initial public offering, a spin off or a sale to another investor, remains open for Inoxum.
Last week, the company announced that the divestment of Inoxum, formerly Stainless Global, is proceeding according to plan and that it expects to complete the disposal of the unit by the end of 2012.
Reports say that ThyssenKrupp will retain a minority stake after the merger.
In May 2011, ThyssenKrupp announced its decision to divest its stainless-steel operations. The company planned to spin off more units as part of a move to maintain stronger focus within the automotive business activities.
The divestments envisaged by the Executive Board of the company were about 10 billion euros and 35,000 employees.
The independence of Inoxum is seen as an important part of ThyssenKrupp group's drive for competitiveness and sustainability.
ThyssenKrupp has already completed the sale of its Metal Forming group and Xervon group.
Inoxum posted sales of around 5.9 billion euros in the 2009/10 fiscal year. It comprises plants in Germany, Italy, Mexico, China and the United States employing around 11,300 people.
VL
