Schneidershne is the fifth-largest paper merchant in Europe, with sales of 768m from 1.1m tonnes of paper and board in 2004, and the deal will more than double the size of Papyrus.

Despite the purchase, Papyrus president Mats Nordlander said: "The situation remains the same, and it's not our aim to come back into the UK."

PaperlinX regional president for the UK and Ireland, Martin Fothergill, remained cautious over the acquisition. "The purchase is a big step which expands their operations, whereas the other deals were just strengthening their position," he said.

Fothergill said he would be interested to know what Papyrus' end goal was, given its recent acquisitive spree.

Papyrus acquired the merchanting operations of Papeteries de France in March this year, and Scaldia Paper last year.

Papyrus employs 1,330 staff across 23 operations in Europe, with sales of 514m.

Story by Andy Scott