EU clears Outokumpu to buy ThyssenKrupp stainless steel unit

(BRUSSELS) - The European Commission cleared on Wednesday the acquisition of ThyssenKrupp's Inoxum unit by Finnish firm Outokumpu which will create the world's biggest specialist stainless steel company.

It said Outukumpo had agreed to sell Inoxum's plant at Terni, Italy so as to meet concerns that the new entity would have have had too much power to determine prices in the cold rolled steel products market.

The sale of the Terni plant "ensures that the creation of a new European market leader will not be detrimental for consumers and businesses," EU Competition Commissioner Joaquin Almunia said in a statement.

Without the Terni sale, the new company would have been three times as big as Luxembourg's Aperam and five times Acerinox of Spain, the closest competitors.

Outokumpu also agreed to divest several distribution centres in Europe.

The Commission said it would make sure the Italian plant is "sold to a suitable purchaser ... and will check that Terni's viability and competitiveness is ensured."