ThyssenKrupp and Outokumpu in merger talks
It has been confirmed steelmaking firms ThyssenKrupp and Outokumpu are in discussions over a possible merger.
Negotiation consultants may be needed by Finnish stainless steel provider Outokumpu and German steelmaking firm ThyssenKrupp, as the two enterprises are in talks over a possible merger.
ThyssenKrupp has debts exceeding €3.6 billion (£2.98 billion) and intends to offload non-core assets, bringing in revenues of €10 billion to help it repay these, Reuters reports.
The industry is dealing with problems including an economic downturn, competitors from Asia and overcapacity.
Someone close to the discussions informed the news source that the talks have been going on "for some time already".
Although no decision has yet been made, ThyssenKrupp intends to fully sell its entire stainless steel unit, another insider noted.
In early morning trade, Outokumpu's shares jumped by 17 per cent.
The company has confirmed that it is in preliminary discussions regarding the merger.
A statement released by the firm said: "There can be no assurance that any transaction will be proposed or consummated and if so, what the parameters of such transaction might be."
Posted by Ken Hayes
Source: Reuters, January 23rd