Increasing merry-go-round action in the paper industry this week saw Mets-Serla gain 100% control of Modo Paper after buying out joint owners Holmen and SCA in a 1.43bn (EUR2.3bn) debt-free deal.
Under the terms of the deal, which was first mooted three months ago, SCA will receive Mets-Serlas 65.6% holding in Mets Tissue, plus its corrugated packaging business, while Holmen will be paid in cash.
Mets-Serla said its 3.5m tonnes of fine paper capacity out of its 4.7m tonnes in total would make it the largest producer of coated and uncoated fine papers in Europe with a 23% market share. It would also become the continents third largest merchant. Pro-forma sales for 1999 would be 3.49bn, and the company would employ nearly 16,000 staff.
Modo Paper manufactures fine paper at seven European mills, and specialises in commercial print and office paper.
The company was formed through the merger of the fine paper and merchanting divisions of Holmen (formerly MoDo) and SCA in October 1999. It abandoned plans to float on the stock market in March.