Finland-based stainless steelmaker Outokumpu has announced that, following the market testing of Outokumpu's initial remedy proposal announced on September 20, 2012, the EU Commission has stated that the divestment by Outokumpu of its Swedish melting and coil operations may not be sufficient to permit the approval of the Inoxum transaction.
Accordingly, Outokumpu has decided to submit an alternative remedy proposal to the EU Commission under which the Inoxum stainless steel mill in Terni, Italy will be divested, while selected European service centers would also not be part of the merged group.
The review process of the EU Commission is expected to continue until November 16, 2012. Outokumpu remains committed to finalizing the transaction by the end of 2012.
In January of the current year, Outokumpu announced that it intended to acquire Inoxum, the stainless steel unit of German steel producer ThyssenKrupp, for €2.7 billion.