Finland's UPM-KYMMENE (Europe's leading paper maker with sales of EUR 8.26 billion in 1999 and 31,000 employees) and the US firm CHAMPION INTERNATIONAL (sales of USD 3.92 billion for the first nine months of 1999 with 18,000 employees) have announced their merger, with a view to creating the world's number one undertaking in the sector. The new venture, CHAMPION INTERNATIONAL, will be present in 17 countries with turnover of close to EUR 13 billion, estimated stock market capitalisation of EUR 15.5 billion, annual production of around 12.1 million tonnes and 6.6 million hectares of forest worldwide under its control. Under the agreement, UPM-KYMMENE will swap 1.99 of its ordinary shares for one CHAMPION INTERNATIONAL share, valuing the American group at around EUR 6.6 billion. The operation still has to be approved by both groups' shareholders and regulatory authorities.