FRANKFURT, Jan 30 (Reuters) - Outokumpu will buy ThyssenKrupp’s stainless steel unit Inoxum for around 2.7 billion euro ($3.5 billion) in a cash-and-share deal that will see Germany’s biggest steelmaker take a minority stake in its Finnish rival, German daily Die Welt newspaper reported on Monday.
The paper, citing company sources, said Outokumpu will integrate Inoxum to form a new world market leader in stainless steel, with combined pro forma sales of more than 10 billion euros.
A spokesman for ThyssenKrupp declined comment.
ThyssenKrupp will hold a minority shareholding of less than 30 percent stake in the enlarged Outokumpu for one year and will also receive cash, the paper said, according to an advance excerpt of its Tuesday edition.
ThyssenKrupp will also be able to transfer a three-digit million euro debt on to Outokumpu’s books, the report said.
ThyssenKrupp had net debt of 3.58 billion euros as of the end of its fiscal year to Sept. 30, 2011.
The report said melt shops in Bochum and Krefeld will be shut down but there will be no forced redundancies. ($1 = 0.7625 euro) (Reporting By Marilyn Gerlach; Editing by Dan Lalor)