Inoxum-Outokumpu merger plan may spark further stainless steel consolidation

ThyssenKrupp announced on January 31 that its stainless steel arm, Inoxum, would combine with fellow steelmaker Outokumpu in a deal valuing Inoxum at €2.7 billion ($3.6 billion), with the transaction to be completed by the end of 2012. The union could result in further consolidation in the sector and a possible joining of forces between Spanish stainless steel producer Acerinox and ArcelorMittal’s spun-off stainless unit Aperam, which was unloaded by the steel major and subject to an initial public offering in early 2011. Acerinox’s shares have risen gradually on the Iberian stock exchange since the announcement of a potential tie up between Inoxum and Outokumpu in January. Share values of both companies shot up after ThyssenKrupp’s and Outokumpu’s talks began on January 23. Stock market boost A tie-up could boost Acerinox’s stock market value by 15% while Aperam’s could rise by as much as 35%, according to analysts at bank...