Ahlstrom submits proposal to EU commission and gets new timeframe
As we know well, Ahlstrom wishes to combine its Label and Processing business with Munksjö and the European Commission has put forward some reservations. The two companies have filed a remedy proposal to the EU Commission on March 20, 2013
Under the remedy proposal, Ahlstrom proposes that the abrasive backings and pre-impregnated 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 and informed on March 22 of a further review extension up to June 7, 2013, however this date is disregarding the fact that Ahlstrom has to meet a deadline up to May 27, 2013 for the demerger plans as per decree of the Extraordinary General Meeting (EGM) of November 2012. It is therefore possible that the decision by the EU Commission will not be received timely, in case of expiration of the plan, a new EGM will be needed to take the according decisions for the demerger plan of LP Europe – and if this is the case – the completion of the LP Europe demerger will also be postponed to the second half of 2013 like Brazil (Coated Specialties) .