LONDON The merger between
ThyssenKrupp AG stainless division Inoxum Group and Finnish
stainless producer Outokumpu Oyj has been completed, both
companies confirmed Friday.
Under the terms of the deal,
Inoxum is now part of Outokumpu, with ThyssenKrupp taking a
29.9-percent stake in the company.
The new Outokumpu will start
operations with a new structure and corporate governance on
Dec. 29, the companies said. The combined company has been
organized into four divisions: stainless coil Americas, led by
Kari Parvento; stainless coil Europe, Middle East and Africa
(EMEA); stainless Asia Pacific (APAC); and high-performance
stainless and alloys.
The close of the transaction
came slightly ahead of schedule. An Outokumpu spokesman told
AMM earlier this month that the combined entity would
begin operations Jan. 1 (
amm.com, Dec. 20).
The deal means the Finnish group
will transfer 1 billion ($1.32 billion) to ThyssenKrupp,
as well as assume 133 million of Inoxums external
debt and 338 million of pension liabilities. ThyssenKrupp
also will receive a loan note with a current value of
1.25 billion ($1.65 billion) in addition to its stake in
the new company.
The merged company, with 16,900
employees, estimated annual revenues of 9.6 billion
($12.7 billion) and a cold rolling capacity of 2.8 million
tonnes per year, will have a 40-percent share of the European
stainless steel and high-performance alloys market and a
12-percent stake in the worldwide market, Outokumpu said.
"The rationale for building this
new industry powerhouse remains as strong as ever: optimizing
our production structure, expanding both our product portfolio
and market presence to growth markets in the Americas and Asia
and reaching annual synergy savings of approximately 200
million," Outokumpu chief executive officer Mika Seitovirta
Of the cost synergies, 50
million ($65.9 million) are expected to be achieved in 2013,
with a further 150 million ($197.8 million) in 2014.
The combined entity plans to cut
its capacity through the previously announced closure of the
melt shop in Krefeld, Germany, at the end of 2013. The company
also plans to close the melt shop in Bochum, Germany, by the
end of 2016, pending a review of its financial performance in
2015, while a reduction of thin cold rolling capacity in Sweden
from 2014 onwards is still being considered.
A version of this article was first
published by AMM sister publication Steel