The closing of the transaction is subject to regulatory approvals
Following the signing of a Memorandum of Understanding on February 17, Rautaruukki Corporation, AB SKF and Wärtsilä Corporation have today signed a definitive agreement to combine long steel businesses into a jointly owned new company (“NewCo”). The due diligence investigations have been completed. The transaction is subject to relevant regulatory approvals and is expected to close before May 31, 2005.
NewCo will be a leading European long steel producer of engineering steels to the rolling bearing, heavy vehicle, automotive and general engineering industries. NewCo's operations will consist of Rautaruukki's long products subsidiaries Fundia Special Bar, Fundia Wire and Fundia Bar & Wire Processing, SKF's subsidiary Ovako Steel and Wärtsilä's subsidiary Imatra Steel. Rautaruukki's reinforcing business will not be part of NewCo. Rautaruukki, SKF and Wärtsilä will own 47.0%, 26.5% and 26.5% of NewCo, respectively.
For further information: Eeva Kainulainen, Vice President, Corporate Communications & IR, Wärtsilä Corporation, phone: +358 10 7095 235.