The transaction, which is carried out in the form of a share sale, must be completed within a few months, subject to customary conditions, including competition approval.
At the beginning of the year, the Finnish steelmaker transferred the majority of its Longs division to Italian re-roller Marcegaglia, excluding Degerfors and Storfors. While the remaining two division continue to operate within the Outokumpu Group, the firm evaluated different options for their future.
Matti Louhija, Head of Purchasing Outokumpu, said, “Our priority for the remaining longs operations in Degerfors and Storfors has also been to find buyers. We are happy to have agreed with Cogne Acciai Speciali for these operations as well. At the same time, this agreement is another positive step for Outokumpu in our strategy of focusing entirely on our core business, stainless steel flat products and ferrochrome.”
The transaction was said to have an operating value of €12 million ($13 million), which had a positive cash impact for Outokumpu. However, Outokumpu is planning a loss of around €30 million based on current valuation estimates. The amount of the loss is also subject to closing accounts and the accumulated final translation difference.
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