EU Commission Approves UPM Acquisition of Myllykoski
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The European Commission this week unconditionally approved UPM-Kymmene Oyj's (Helsinki, Finland) acquisition of Finland-based Myllykoski Corp. and Rhein Papier GmbH (Myllykoski), Germany. UPM thus has obtained all required regulatory clearances for the transaction. The target for the final closing of the transaction is in late July - early August. The companies announced the transaction this past December 21.
"We are extremely pleased with the Commission's positive decision. 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," saids Jussi Pesonen, UPM's president and CEO.
The transaction includes Myllykoski's seven publication paper mills in Germany, Finland, and the U.S. The total annual paper production capacity is 2.8 million metric tons. The transaction also includes Myllykoski Corp.'s 0.8 % ownership of the Finnish energy company Pohjolan Voima Oy. The approximate enterprise value of all businesses acquired is EUR 900 million.
Providing closing takes place before August 3, UPM will publish proforma financial information on the transaction in connection with its interim review.
Myllykoski, a family-owned international paper group, 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 metric tons. The mills are located in Albbruck, Ettringen, Hûrth, and Plattling (two mills) in Germany, in Kouvola, Finland, and in Madison, Wis., USA. Myllykoski employs approximately 2,500 people, of which 1,900 are based in Germany.
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