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Sweden/Finland: Downturn forces steel consolidation

 |  January 22, 2014

As demand for steel continues to drop throughout Europe, reports say steelmakers SSAB and Rautaruukki have inked a $1.6 billion deal that will consolidate the industry.

Reports say Sweden-based SSAB will acquire Finland-based Rautaruukki after the two have lost a combined $542 million in the last five quarters. Reports say the competitors have discussed such a merger for decades. A deal was inked after SSAB lost status in 2012 as one of the top-40 steel companies due to heightened demand in China and a struggling EU market.

In addition to the merger, announced Tuesday, reports say the combined company plans to cut its workforce by about five percent.

The deal remains subject to regulatory approval.

Full Content: Reuters

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