M-real, Argowiggins Cancel German Mill Deal
June 16, 2008 - M-real on Friday (June 13) said that the sale of its Reflex specialty paper mill in Duren, Germany has been cancelled due to an unfavorable condition set by the European Commission.
On October 12, 2007, M-real announced that it would sell the Reflex mill to Argowiggins Group. The Reflex mill has an annual capacity of about 100,000 tons of specialty office and image papers, carbonless copy paper and digital imaging papers.
The sale was conditionally approved on June 4 by the European Commission whereby Arjowiggins would have to divest the Reflex mill's carbonless and digital imaging businesses to a third party.
M-real and Argowiggins determined that the condition "considerably weakened" the deal and terminated the sale agreement.
M-real said the Reflex mill will continue to be developed as part of M-real.
See related story:
» M-real to Sell German Mill to Arjowiggins (10/12/07)