FCCA Approved Merger Between Stora Enso and Junnikkala

Earlier in October last year, Stora Enso announced its decision to acquire the entire share capital of Junnikkala.

SEATTLE (Scrap Monster): The Finnish competition authority has approved the merger between Stora Enso and the Finnish sawmill company Junnikkala. The unconditional approval by the Finnish Competition and Consumer Authority (FCCA) is subsequent to a thorough investigation conducted by it with regards to competitive effects of the merger between the two companies.

Among other things, the examination concentrated on the roundwood purchases made by both corporations' procurement departments. It came to the conclusion that there is little chance that the merger will cause competition issues.

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The investigation's conclusions indicate that even after the acquisition, the combined market share of the two companies will stay modest. There would still be a number of significant rival wood buyers in the area. Because a decline in log prices may cause wood buyers to expand their procurement areas, the two corporations' market strength will remain constrained. Furthermore, FCCA pointed out that Stora Enso and Junnikkala have very distinct needs for raw materials and approaches to acquiring wood.

Stora Enso declared earlier in October of last year that it would buy all of Junnikkala's shares.

The three Finnish sawmills owned by Junnikkala are situated in Kalajoki, Oulu, and Oulainen. In the meantime, Stora Enso owns and runs a board mill in Oulu as well as a sawmill in Veitsiluoto.

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