Press Release: Mergers: Commission approves merger of Munksjö and Ahlstrom’s label and processing paper business, subject to conditions

Following an in-depth investigation, the European Commission has approved under the EU Merger Regulation the proposed merger of Munksjö AB of Sweden and the label and processing paper business of Ahlstrom Corporation of Finland in the specialty paper industry. The approval is conditional upon the divestment of Ahlstrom's abrasive paper backings and pre-impregnated paper ("PRIP") business located at Osnabrück, Germany. The Commission had concerns that the transaction, as initially notified, would have allowed the merged entity, Munksjö Oyj, to raise prices in heavy weight abrasive paper backings, which are used in abrasive products, and PRIP, a type of décor paper used by furniture manufacturers (e.g. IKEA). The commitments offered by the parties effectively address these concerns.

ESO: Background Information: Mergers: Commission opens in-depth investigation into creation of "NewCo", combining Munksjö and part of Ahlstrom http://www.europeansources.info/record/press-release-mergers-commission-opens-in-depth-investigation-into-creation-of-newco-combining-munksjo-and-part-of-ahlstrom/

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