By Vanessa Mock
BRUSSELS--European Union regulators Wednesday granted
conditional clearance of Finnish stainless steel company
Outokumpu's (OUT1V) merger with Inoxum, the stainless steel
division of Germany's ThyssenKrupp AG (TKA.XE).
The approval is conditional on Inoxum disposing of its stainless
steel production facility in Terni, Italy, to allay concerns that
the tie-up of the two largest suppliers of cold rolled steel
products could lead to anti-competitive practices and raise
prices.
In a statement, the European Commission said the commitments
offered address these concerns. A number of Inoxum's distribution
centers in Europe will also be sold.
"The divestment of the Italian Terni plant ensures that the
creation of a new European market leader will not be detrimental
for consumers and businesses in Europe," said Joaquín Almunia, the
EU's competition chief.
The transaction, as initially notified, would have created a
player three times larger than Aperam of Luxembourg and five times
as big as Acerinox of Spain, the closest competitors and
respectively the third and fourth players in the market, the
regulators said.
Write to Vanessa Mock at vanessa.mock@dowjones.com
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