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Nov 7 (Reuters) - Finnish steel producer Outokumpu Oyj won EU regulatory approval on Wednesday to acquire German peer ThyssenKrupp AG’s stainless steel business in a 2.7 billion euro ($3.46 billion) deal after agreeing to sell an Italian facility.
The acquisition of Inoxum will help Outokumpu better compete with cut-price Asian rivals in a sector struggling with overcapacity.
Outokumpu, Europe’s No. 4 stainless steel producer, offered to offload Inoxum’s prized mill in Terni, Italy after the European Commission voiced concerns about the merged company’s high market shares in some steel products and the possibility of price hikes.
The EU competition watchdog said in a statement that the disposal allays its concerns.
“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,” EU Competition Comissioner Joaquin Almunia said.
Outokumpu also competes with Spain’s Acerinox and Luxembourg-based Aperam