Capital market-relevant press releases, 2012-11-07, 12:10 PM
European Commission approves combination of Outokumpu and Inoxum
Further important milestone in ThyssenKrupp’s strategic development program
The European Commission today approved the combination of Outokumpu and Inoxum, the stainless steel arm of ThyssenKrupp, subject to conditions, thus giving the green light for the merger of the businesses into a new world market leader in the stainless steel sector. It is expected that the transaction will be closed before the end of this year.
Milestone for strategic development program
“The combination of Inoxum and Outokumpu marks an important milestone in the implementation of our strategic development program,” said Dr. Heinrich Hiesinger, Executive Board Chairman of ThyssenKrupp. “Today’s approval represents an important step on our path to becoming a diversified industrial group. This transaction improves ThyssenKrupp’s strategic profile and reduces its net financial debt.”
Hiesinger added: “We are convinced that despite the conditions imposed by the European Commission, the combination of Outokumpu and Inoxum will make the new company significantly more competitive on the global market. It will create highly promising prospects that will also be of long-term benefit to the Inoxum workforce. I would like to expressly thank Inoxum’s employees and the employee representatives for supporting the combination from the outset and cooperating in the transaction.”
Portfolio optimization executed quickly
ThyssenKrupp decided to divest Inoxum as part of its strategic way forward.
In May 2011 the Group announced a portfolio optimization program to divest businesses for which there were stronger alternative strategic options outside the Group. Overall, the program included businesses with sales of more than 10 billion euros. Less than 18 months on, the approval of the Inoxum deal means ThyssenKrupp has found solutions or closed transactions for all the portfolio measures announced in May 2011.