ThyssenKrupp to sell stainless in 2.7 billion euro deal

ThyssenKrupp AG confirms that an agreement in principle has been reached about the combination of Outokumpu and Inoxum, ThyssenKrupp’s stainless steel business.

The Management Board of ThyssenKrupp AG has already generally approved the transaction.

In addition to that, an agreement was reached between the negotiating partners and the employee representatives Tuesday morning. The agreement includes rules for site and employment protection.

Krefeld – gradually shut down
The melt shop in Krefeld will be gradually shut down until the end of 2013. At least until this point in time the strip casting equipment will continue to operate.

Bochum – preserved until 2016
The melt shop in Bochum will be preserved until the end of 2016.

The agreement also generally excludes compulsory redundancies until the end of 2015. All German production sites of Inoxum will be preserved without restrictions at least until 2015.

The Supervisory Board of ThyssenKrupp AG will have an extraordinary meeting Tuesday afternoon.

Enterprise value
The transaction agreement values Inoxum at an enterprise value of approx. EUR 2.7 bn. Under the agreement, ThyssenKrupp would obtain a minority stake of 29.9 % in the new company for its transfer of Inoxum.

In addition, the consideration would include a significant cash payment from Outokumpu to repay ThyssenKrupp’s financial receivables towards Inoxum as well the assumption of third-party financial liabilities and pension liabilities of Inoxum by Outokumpu.

Read Metal Supply's related article Worker union disagreement to complicate ThyssenKrupp Outokumpu deal