SCA to sell parts of former GP business to Sofidel
Five months after the takeover of Georgia-Pacific’s European tissue business was finalised, SCA has agreed with Sofidel on the sale of parts of the business in order to comply with EU competition rules.
SCA and Sofidel have signed a sales agreement for the former Georgia-Pacific manufacturer branded business in the UK, Ireland and Benelux.
SCA is planning to sell these businesses after it had acquired Georgia-Pacific’s European tissue operations on 19 July 2012. The European Commission had made the transaction subject to certain conditions such as the divestment of the GP’s Consumer Tissue business in the UK.
The sales agreement with Sofidel covers the former GP manufacturer branded business in the UK and Ireland including production capacity at the Horwich mill as well as the former GP consumer tissue business with the Lotus and Lotus Moltonel brands in Benelux including a time-limited license to use these brands in Benelux.
At the moment, SCA and Sofidel are awaiting formal approval from the EU Commission that the requirements have been fulfilled. During this period business will continue to operate as usual, SCA states. Furthermore, the company continues negotiations with potential purchasers for the remaining parts of the business which are also obliged to be sold under the EU ruling.
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