The Finnish paper maker Metsä-Serla announced on 31 May 2000 the purchase of Swedish Modo Paper from two of its rivals for debt free value of 2.3 billion.
The Swedish rivals, Svenska Cellulosa (SCA) and Holmen held, 50 % each of Modo Paper. In connection to this acquisition Metsä-Serla sold its corrugated packaging business for 200 and its 66 per cent holding in Metsä Tissue for 295 million to SCA. After the transaction SCA will hold 85 per cent of Metsä Tissue.
Through the purchase of Modo Paper Metsä-Serla becomes the largest producer of both coated and uncoated fine papers in Europe when the company’s two new coating lines that are still under construction are taken into consideration. The pro forma sales of Metsä-Serla will rise from 4.2 in 1999 to 5.6.
The transactions are, however, subject to the approval of European Union antitrust regulators. The approval is expected to be announced at earliest in July 2000.
The markets reacted to the Metsä-Serla’s announcement negatively and its shareprice dropped approximately 5 per cent on the same day. The share quotation of Metsä Tissue, on the other hand shot up 35 per cent.
For further information, please contact Pekka Lehtinen.
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