September 20, 2012 / 7:28 AM / 8 years ago

UPDATE 1-Outokumpu revises Inoxum deal proposal to regulators

(Adds background on deal)

HELSINKI, Sept 20 (Reuters) - Finnish stainless steel maker Outokumpu has offered to divest parts of its business in a bid to be allowed to buy ThyssenKrupp’s Inoxum unit, after the European Commission raised concerns about competition.

Outokumpu said on Thursday it had submitted a revised proposal to the EC including a sale of its Swedish melting and coil operations in Avesta, Nyby and Kloster as well as part of its European sales network.

The EC extended its review period through Nov. 16, the company said, adding it expected to finalise the deal by the end of the year. The Commission was previously expected to make a decision by Oct. 24.

“We have proposed a significant remedy to the EU Commission to address their concerns, and will now continue our constructive dialogue,” Outokumpu chief executive Mika Seitovirta said.

The deal, aimed to help it deal with overcapacity and price competition from Asia, will make Outokumpu the world’s top stainless steel producer. It is currently No. 4 in Europe where rivals include Acerinox and Aperam. (Reporting by Ritsuko Ando; Editing by Dan Lalor) (Ritsuko.Ando@thomsonreuters.com; +358 9 6805 0242; Reuters Messaging: ritsuko.ando.thomsonreuters.com@reuters.net)

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