EU Commission approves SCA divestments
SCA has obtained approval from the European Commission to sell parts of the operations it has acquired from Georgia-Pacific. This includes divestments to Sofidel, Northwood & WEPA and Vajda Papir.
The European Commission has approved SCA's divestment of former Georgia-Pacific (GP) units in the UK, Ireland, the Benelux countries and Scandinavia. Following the takeover of Georgia Pacific's European tissue operations in July 2012, SCA had agreed to divest parts of it in order to comply with EU competition rules.
The company reported that the retailer brand business in the UK and Ireland was being sold to UK hygiene products manufacturer Northwood & WEPA. The production facility in Bridgend is said to be included in this transaction.
Following the approval from the EU competition authorities, SCA was now able to finalise the planned divestment of its Drammen tissue mill in Norway to Vajda Papir. The Hungarian tissue producer also took over one converting line at SCA's Nokia plant in Finland.
As announced earlier, SCA is furthermore selling the branded business in the UK and Ireland including production capacity at the Horwich mill to Italian tissue manufacturer Sofidel. The transaction also covers the consumer tissue business with the Lotus and Lotus Moltonel brands in Benelux, including a license to use these brands in Benelux. Sofidel recently said that the transaction took effect on 1 April.
EUWID Pulp and Paper keeps busy professionals up-to-date on the latest news from European pulp and paper markets.
Test EUWID Pulp and Paper free of charge and without any obligation by clicking here.