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Inoxum-Outokumpu merger shows new profit potential in stainless steel, Moody's says

February 06, 2012 - 12:52 GMT Location: London

KEYWORDS: Moody's , stainless steel , ThyssenKrupp , Inoxum , Outokumpu , Calvert , Alabama , AST , Italy

Moody’s Investors Service has highlighted the advantages of the merger deal struck by stainless steel producers Outokumpu and ThyssenKrupp’s Inoxum.

ThyssenKrupp announced on January 31 that its stainless steel arm was to 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 Inoxum-Outokumpu merger (…) could go a long way toward making the industry profitable,” Moody’s wrote in its weekly credit outlook on Monday February 6. Moody’s describes the transaction as “credit-positive for Thyssen,” as it allows the company to...

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