EU Commission has some objections
As we all know, Ahlstrom and Munksjö are planning combining the Label and Processing. Now the EU Commission voices some objections
The objections address the competitive effects of the proposed combination of Ahlstrom’s Label and Processing Business and Munksjö with respect to abrasive backings and pre-impregnated decor paper.
The two companies are working closely with the EU Commission in order to resolve the competition issues identified. No final decisions have been taken yet with regard to potential remedies, but the potential effect of any remedies on the previously synergies will be communicated in due course.
As a consequence of the negations, Ahlstrom now expects to complete the demerger of the company’s Label and Processing business in Europe and other related measures forming the first phase of the planned transaction during the second quarter of 2013 instead of the previously targeted first quarter of 2013. The demerger of Ahlstrom’s Label and Processing business in Brazil is still expected to be completed in the second quarter of 2013.