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Europe Daily Bulletin No. 7809
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GENERAL NEWS / (eu) eu/competition

Commission opens in-depth investigation on planned acquisition of Metsa Tissue by SCA Molnlycke

Brussels, 28/09/2000 (Agence Europe) - The Commission will open an in-depth investigation (four months) into the planned acquisition of Metsa Tissue by SCA Molnlycke, feeling that this operation could create a dominant position in certain markets for tissue paper hygiene products. 100% subsidiary of the Swedish company Svenska Cellulosa AB, the forestry and paper company, SCA produces and distributes a wide range of hygiene products made from tissue paper in the whole European Economic Area. It also makes tissue products in most of the EU Member States as well as in Poland and Russia. Metsa Tissue, 60% held by the Finnish company Metsa-Serla Corp, owns production facilities in German, Finland, Sweden and Poland. The acquisition placed under investigation is part of a complex share swap operation between Svenska Cellulosa and Metsa-Serla including three transactions, of which two have already been authorised by the Commission (the acquisition of Modo by Metsa-Serla and the acquisition for Matsa Corrugated by SCA Packaging: see EUROPE of 12 August, p.3 and 28&29 August, p.6). The third plan would give the parties very high market shares in certain markets for paper tissue consuming products in Scandinavian countries. With regard to the away from home products, the parties would also hold very high market shares in the Nordic countries and high ones in other Member States. The tissue paper hygiene products are sold either through the intermediary of retailers, it is then a case of consumer products, or the hotels, schools, hospitals etc., in which case we are then taking about away from home products. During the procedure, the parties submitted certain undertakings however considered insufficient by the Commission which thus decided to examine the operation in greater detail before taking a final decision.

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