Competition authorities approve Marcegaglia’s

Outokumpu longs unit acquisition The European Commission and the US competition authority have approved Outokumpu’s divestment of its long products division to Italian re-roller Marcegaglia, Kallanish learns from the stainless steelmaker.

The merger remains subject to closing conditions and antitrust regulatory approvals. Outokumpu expects it to be completed at the beginning of 2023.

Marcegaglia will buy an electric arc furnace mill for speciality steels, a wire rod rolling plant and bar production plant in Sheffield, UK, a bar production plant in Richburg, US, and a wire rod mill in Fagersta, Sweden. The transaction does not include Outokumpu Long Products AB operations in Degerfors and Storfors, Sweden.

In October, Marcegaglia agreed to acquire Outokumpu’s Long Products division for €228 million ($243m). The transaction represents Marcegaglia’s first foray into steelmaking (see Kallanish 1 November). In 2021, the Long Products division achieved revenue of €810m, with Ebitda of €47m. It employs about 700 workers.

Outokumpu now intends to focus on its core business of flat stainless steel products. The sales generated by Long Products accounted for approximately 8% of Outokumpu Group’s revenue in 2021.

Natalia Capra France