Brussels, 07/03/2011 (Agence Europe) - On Friday 4 March, the European Commission opened an in-depth investigation into the planned acquisition of sole control by UPM-Kymmene Corporation (UPM) of Myllykoski Corporation (Myllykoski), both of Finland, and Rhein Papier GmbH (Rhein Papier), of Germany, all active in the paper industry.
It emerges that the proposed merger, of which the Commission was notified on 28 January, could raise serious competition concerns as the merged entity would have high market shares in magazine paper overall and very high market shares in one segment, supercalendered papers. It would not appear to be sufficiently constrained in these market segments by the remaining competitors, leading to fears from clients of higher prices for magazine paper. The Commission decided, therefore, to begin an in-depth investigation into the exact impact of the merger and to determine whether or not competition is impeded. It now has 90 working days to come to a final decision.
UPM is a world-wide company operating in the paper goods, pulp, electricity, label-stock, sawn timber and wood panel products. Myllykoski sells paper products and pulp throughout the world, and has production sites in Finland, Germany and the United States. Rhein Papier, which is managed by Myllykoski, manufactures paper and forest products in Germany and has sales worldwide. (F.G./transl.rt)