The European Commission has issued a Statement of Objections to Ahlstrom and Munksjö addressing the competitive effects of the previously proposed combination of Ahlstrom's Label and Processing Business and Munksjö with respect to abrasive backings and pre-impregnated decor paper.
In order to resolve the competition issues identified by the commission, Ahlstrom and Swedish company Munksjö are working with the EU and no final decisions have been taken yet with regard to potential remedies.
As a result of the negotiations with the commission, Ahlstrom hopes to conclude the demerger of its Label and Processing business in Europe and other related measures forming the first phase of the planned transaction during the second quarter of 2013.
According to the Finnish company Ahlstrom, the demerger in Brazil is still expected to be completed in the second quarter of 2013.
A second phase investigation has been opened by the commission into the proposed combination in December 2012, following which a final decision will be taken on whether it would impede competition in the European Economic Area or any substantial part of it.