Following the strategic review, the Board of Directors of Stora Enso has decided to initiate preparations for the separation of the Swedish forest assets business of Stora Enso into a new publicly-listed company through a statutory partial cross-border demerger, expected to be completed during the first half of 2027. All shares in the new company would be wholly owned by Stora Enso's shareholders.
The separation of the Swedish forest assets was assessed to be the best alternative to enhance focus on respective businesses’ core strengths and market opportunities, maximising operational and shareholder value, as well as to reduce group complexity.
It intends to create Europe's largest listed pure play forest company, comprising over 1.2 million hectares of forest land in Sweden with a fair value of approximately EUR 5.7 billion as of 30 September 2025.
Stora Enso will continue to lead in renewable materials and packaging, with strong market positions and more flexible, integrated, and cost-competitive production.
The new company is intended to be listed on Nasdaq Stockholm and Nasdaq Helsinki with its headquarter located in Falun, Sweden.
The contemplated demerger is subject to, among others, approval by a General Meeting of Stora Enso to be convened separately by the Board of Directors at a later stage.
Tuomas Hallenberg, currently Executive Vice President of Stora Enso’s Forest business area, has been appointed President and CEO of Stora Enso’s Swedish forest business.
“The Board’s decision to move forward with the demerger marks a milestone in the creation of the largest listed pure play forest company in Europe. The separation and public listing of Stora Enso’s Swedish forest assets business will unlock value potential and focus of both the forest assets and industrial operations, enabling accelerated growth across each business. Consistent with Stora Enso’s commitment to maximise shareholder value, it will now continue the preparations towards the public listing of the new company,” said Kari Jordan, Chair of Stora Enso’s Board of Directors.
“We are excited to now enter the next phase of this important chapter in our company’s history. The demerger will create a solid foundation for independent growth of both companies. Moreover, the two companies would maintain a strategic relationship, where Stora Enso gains access to a long-term wood supply agreement with the new company, securing revenues for both parties,” said Hans Sohlström, President and CEO of Stora Enso.
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