Stainless steel maker Aperam has confirmed that very preliminary discussions with Acerinox with respect to a possible transaction that may result in a business combination have been recently engaged. Aperam said “Those discussions are at an early stage, and no agreement has been reached as to the scope, structure or terms of any possible transaction. There is no certainty that any such agreement will be reached or, if so, on what terms. Aperam will, consistent with its legal obligations, inform the market as and when it is required to do so.”Bloomberg, citing people familiar with the matter, had reported last weekthat global stainless steel giant Aperam SA, spun off from ArcelorMittal, is considering a combination with Spanish rival Acerinox SA. Sources said “The companies are working with advisers as they explore a potential deal. Any combination would require the backing of the Mittal family, which controls about 40% of Aperam, as well as Spain’s March family, which is the biggest shareholder in Acerinox with 18% through an investment vehicle. No final decisions have been made and talks could still fall apart.”Acerinox is a stainless steel manufacturing conglomerate group based in Spain. The company was founded in 1970, and initially received technical support from the Japanese firm Nisshin Steel. Nisshin continues to hold approximately 15% of Acerinox as of April 2010 according to Wikipedia. Acerinox has several facilities in Spain, Europe, South Africa, Malaysia, US, Argentina & Chile. Its revenue increased by more than 44% to EUR 6,706 million in 2021 with EBITDA totaling EUR 989 million. Acerinox’s melting shop production amounted to 2.6 million tonnes, exceeding that of 2020 by 19% and setting a new all-time record.Aperam is a company, listed on the Amsterdam, Brussels, Paris, Madrid and Luxembourg stock exchanges and with facilities in Brazil, Belgium and France, which concentrates on the production of stainless steel and speciality steel. It was spun out of ArcelorMittal at the start of 2011. The Brazilian facility uses charcoal from a series of eucalyptus forests owned and managed by the group rather than coking coal to reduce the material; the European facilities use electric-arc furnaces fed with scrap. The use of charcoal reduces the CO2 footprint of the facility. Its steel shipments totaled 1.819 million tonnes in 2021 with EBITDA of EUR 1,186 million.