EU Commission Approves UPM’s Acquisition of Myllykoski
HELSINKI, FINLAND—July 13, 2011—The European Commission has unconditionally approved UPM-Kymmene Oyj’s acquisition of Myllykoski Corp. and Rhein Papier GmbH. Thus UPM has obtained all required regulatory clearances for the transaction, which is targeted for the final closing in late July or early August.
The transaction includes Myllykoski’s seven publication paper mills in Germany, Finland and the United States. Their total annual paper production capacity is 2.8 million tonnes. The transaction also includes Myllykoski’s 0.8 percent ownership of the Finnish energy company Pohjolan Voima Oy. The approximate enterprise value of all businesses acquired is EUR 900 million.
“We are extremely pleased with the commission’s positive decision,” commented Jussi Pesonen, UPM’s president and CEO. “The regulatory process proceeded as planned and the authorities thoroughly investigated the effects of the transaction on the markets. The approval of the transaction means that the European paper industry has better prerequisites to be competitive in the rapidly evolving world of media and against global industry players.”
Providing closing takes place before Aug. 3, 2011, UPM will publish proforma financial information on the transaction in connection with its interim review.
UPM leads the integration of bio and forest industries into a new, sustainable and innovation-driven future. Our products are made of renewable raw materials and are recyclable. UPM consists of three Business Groups: Energy and pulp, Paper, and Engineered materials. The Group employs around 22,000 people and it has production plants in 16 countries. In 2010, UPM's sales amounted to EUR 8.9 billion. UPM's shares are listed on the Helsinki stock exchange. www.upm.com
Myllykoski is a family-owned international paper group. It is one of the largest publication paper producers in the world. The company produces uncoated and coated publication papers, including newsprint.
Myllykoski and Rhein Papier operate altogether seven paper mills in total with an annual paper production capacity of 2.8 million tonnes. The mills are located in Albbruck, Ettringen, Hurth and Plattling (two mills) in Germany, in Kouvola, Finland, and in Madison, the USA. Myllykoski employs approximately 2,500 people, of which 1,900 are based in Germany.