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Billerud – Korsnäs Merger Approved by Swedish Authorities

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Relevant competition authorities have approved the previously announced merger of Sweden-based companies Billerud AB and Korsnäs AB. All conditions for the combination are thus fulfilled. Accordingly, completion of the combination is set to occur today, November 29.

The merger, announced this past June, was conditional upon, among other conditions, approval of Billerud's shareholders as well as approval of relevant competition authorities. Shareholders approved the merger at the extraordinary general meeting held September 14.

"As a result of the combination with Korsnäs, we will become a leading player in the packaging paper business with a strengthened offer and a strong platform for future growth. The new company BillerudKorsnäs will be able to offer customers a better and wider range of products and solution. We will now, with full force, work with the integration and create a world leading company," said Per Lindberg, president and CEO of Billerud.

The European Commission's decision to approve the combination is conditional upon the divestment of a paper machine located at the production facility in Gävle (PM 2). The sales of white kraft and sack paper products manufactured on PM 2 amounted to approximately 2% of the new Group's total combined sales volume for the year 2011. Furthermore, BillerudKorsnäs will, for a period of time, offer to deliver certain supply inputs such as pulp, steam, and electricity to the paper machine.

"The condition for the European Commission's decision concerns a limited part of the new group's business operations and does not have a significant impact on the business logic or the expected synergies of the combination" Lindberg added.

 

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