FRANKFURT –  German steelmaker and engineering company ThyssenKrupp AG (TKA.XE) has in principle agreed to sell its stainless steel operations to Finland's Outokumpu Oyj (OUT1V.HE) in a transaction valued at EUR2.7 billion, a person familiar with the matter told Dow Jones Newswires Monday.

Under the deal, Outokumpu would acquire ThyssenKrupp's stainless steel unit Inoxum for a cash consideration, the person said.

However, ThyssenKrupp would take a stake of just under 30% in Outokumpu and keep that stake for at least one year, the person added.

Additionally, ThyssenKrupp would unload a three-figure million euro amount in debt on Outokumpu, the person said, confirming a report in German daily newspaper Die Welt earlier Monday.

The sale of ThyssenKrupp's unit Inoxum to Outokumpu would create the world's largest maker stainless steel with 18,000 employees and over EUR10 billion in annual revenue.

ThyssenKrupp declined to comment on the matter.

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