EU Conditionally OKs $400M Swedish Packaging Merger

Law360, New York (November 27, 2012, 5:38 PM EST) -- European competition regulators on Tuesday conditionally approved Swedish paper-based packaging manufacturer Billerud AB's $400 million acquisition of industry rival Korsnas, pending a planned divestment of Korsnas' kraft paper business to address potential reduced competition issues.

The European Commission said the transaction as proposed would have merged the first- and third-largest suppliers of white machine finished/unglazed kraft paper businesses, likely harming customers by limiting viable alternative suppliers they could turn to other than BillerudKorsnas. Swedish investment firm AB Kinnevak, which owns Korsnas, responded by agreeing to sell its...
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