Sandvik AB will sell its 50% stake in the Fagersta Stainless AB wire rod mill to joint venture partner Outokumpu Oyj as it looks to exit the stainless wire business.

The transaction, which is worth 184 million Swedish kronor, will be executed in two phases. Sandvik will cut its stake in the mill to 10% by the end of June and divest it completely by the end of 2019. The effect of the divestment on Sandvik's earnings per share will likely be neutral. Outokumpu will own 100% of the company, which is a joint venture between it and Sandvik Materials Technology.

The deal is expected to close in June.