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Finland: Steel maker takes back promise to divest Italy plant

 |  October 22, 2013

Finnish stainless steel manufacturer Outokumpu is reportedly seeking clearance from the European Commission to not divest its Italian steel plant despite having agreed to do so following its acquisition of ThyssenKrupp’s Inoxum unit.

The plant was originally valued at about $677 million but reports say its sale is expected to yield less than half that amount. Sources say Outokumpu is now looking to keep the plant, arguing that maintaining an unsuccessful plant is not anticompetitive.

According to one source, the market has taken a major turn for the worse since last year, when the Commission ruled that Outokumpu must divest the plant.

The Finnish company has already asked the Commission twice to postpone its deadline to divest the plant following what Outokumpu described as unsatisfactory bids for the asset.

Full content: Reuters

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