Ahlstrom and Munksjö have filed a remedy proposal to the European Commission related to the proposed combination of the Label and Processing business and Munksjö with respect to abrasive backings and pre-impregnated décor paper businesses.
Under the remedy proposal, Ahlstrom proposes that the abrasive backings and pre-impregrated décor paper lines in Osnabrück, Germany, will be divested to a third party in order to resolve the competition issues identified by the Commission. The potential effect of the proposed remedies on the previously identified synergies will be communicated in due course.
Following the remedy proposal, the EU Commission has extended the review phase related to the transaction until May 16, 2013.
The demerger of Ahlstrom's Label and Processing business in Europe is expected to be completed in the second quarter of 2013. However, as a consequence of the extended review by the EU, Ahlstrom expects to complete the demerger of the company's Label and Processing business in Brazil during the second half of 2013 instead of the previously targeted second quarter of 2013. The company will arrange a new Extraordinary General Meeting for the shareholders later in the year to decide on the demerger process related to the Brazilian business.
The EU commission opened a second phase investigation into the proposed combination in December 2012 with respect to abrasive backings and pre-impregnated décor papers.
