BillerudKorsnäs Gets OK from EC Regulators for Divestment of PM2 at Gävle Mill

The European Commission has approved BillerudKorsnäs' divestment of paper machine (PM2) at its Gävle mill in Sweden.

June 12, 2013 - The EU Commission has approved BillerudKorsnäs’ divestment of paper machine (PM2) at its Gävle pulp and paper mill in Sweden to SwedPaper AB.

The deal is conditional upon the approval from other relevant competition authorities before closing can take place, BillerudKorsnäs said.

The sale of PM2 was necessary to satisfy the conditions set by the EU Commission for approval of the combination between Billerud and Korsnäs

PM2 produces kraft and sack paper and the machine's production accounted for approximately 2% of BillerudKorsnäs’ total combined sales volume in 2012.

The PM2 operation employs approximately 60 people, who will be offered employment with SwedPaper.

Other operations at the Gävle production unit will not be affected by the sale and will remain in BillerudKorsnäs’ ownership.

BillerudKorsnäs expects the deal to be finalized during the third quarter of 2013.

SOURCE: BillerudKorsnäs