Investment firm Kinnevik has won approval from the European Union for an agreement to sell its Korsnäs packaging operations to Billerud for about SEK2.7bn ($406m), in order to form a merged group called BillerudKorsnäs.
The combination was subject to the approval of Billerud shareholders and customary approvals from relevant competition authorities.
All relevant competition authorities have approved the merger, and conditions for completion of the combination are fulfilled.
The European Commission’s decision to approve the merger of the Swedish packaging companies Korsnäs and Billerud is conditioned upon the divestiture of a paper machine at the production unit in Gävle (PM2).
The sales of white kraft and sack paper products manufactured at the unit amounted to 2% of the BillerudKorsnäs’ total combined sales volume for 2011.
BillerudKorsnäs will also supply certain inputs such as pulp, steam and electricity to the paper machine, for a certain time period following the divestiture.
Kinnevik will have an ownership stake of 25% in the new company.
The company stated that the merger between the companies is a natural step to strengthen Korsnäs and Billerud’s businesses in virgin fibre packaging material.
Image: The sales of white kraft and sack paper products manufactured at the Gävle unit amounted to 2% of the new group’s total combined sales volume for 2011. Photo: Korsnäs AB