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Stora Enso, Brigl & Bergmeister drop German paper mill deal.

M2 EQUITYBITES-October 9, 2014-Stora Enso, Brigl & Bergmeister drop German paper mill deal

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9 October 2014 - Finnish paper group Stora Enso Oyj (HEL:STERV) said on Thursday it had terminated a deal to sell its speciality and coated fine paper mill in Uetersen, Germany, to Brigl & Bergmeister after the Austrian speciality paper producer dropped its application for the purchase.

Stora Enso agreed to sell the loss-making paper mill to Brigl & Bergmeister for EUR10m (USD12.8m) in May, but last month the German Federal Cartel Office (FCO) indicated it might not approve the deal. The parties provided further details about the transaction to clear the regulator's concerns but the authority's assessment remained unchanged, prompting the Austrian company to withdraw its offer.

Stora Enso, which recorded a negative non-recurring item of EUR34m in its second quarter operating profit in relation to the planned sale, said it would now examine other options for the mill, including a sale and restructuring.

The Finnish company noted that it would now turn the loss on disposal of some EUR28m into a positive non-recurring item in its operating profit for the third quarter.

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Publication:M2 EquityBites (EQB)
Date:Oct 9, 2014
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