Stora Enso has signed an agreement in May 2014 to divest its Uetersen specialty and coated fine paper mill in Germany to Brigl & Bergmeister, an Austrian specialty paper producer. Stora Enso recorded a negative non-recurring item of approximately EUR 34 million related to the planned disposal in the second quarter 2014 operating profit.
In September, the German Federal Cartel Office (FCO) indicated intentions to prohibit the proposed merger. Despite further evidence provided by the parties to clear the concerns of the FCO, the authorities’ assessment remained. Consequently, Brigl & Bergmeister withdrew the application for the merger on 9 October. The parties have agreed to terminate the share purchase agreement.
As a consequence, Stora Enso will reverse the loss on disposal of approximately EUR 28 million as a positive non-recurring item in its third quarter 2014 operating profit.
Stora Enso will now evaluate its options, which may include divestment or restructuring of the loss-making Uetersen Mill. This process does not affect the speciality paper production at Imatra Mill or the coated fine paper production at Oulu Mill in Finland.
Stora Enso produces chemical pulp, paper and board, corrugated packaging, and sawn wood products, including a variety of value-added products.
