Outokumpu Oyj (OUT1V)’s bid for ThyssenKrupp AG (TKA)’s Inoxum unit won European Union approval after it agreed to sell an Italian steel mill.
Outokumpu’s offer to sell Inoxum’s stainless steel production facility at Terni and several European service centers alleviates the European Commission’s concerns that the deal might allow the companies raise prices of cold-rolled steel products, the Brussels-based regulator said in an e-mailed statement today.
“The divestment of the Italian Terni plant ensures that the creation of a new European market leader will not be detrimental for consumers and businesses in Europe,” said EU Competition Commissioner Joaquin Almunia in the statement.
The Espoo, Finland-based steelmaker agreed to buy Inoxum on Jan. 31 in a deal valuing the German unit at about 2.7 billion euros ($3.5 billion.) The EU conditions also include an option for the plant’s buyer to purchase Terni’s forge and a bright- annealing production line.
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