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BillerudKorsnäs receives regulatory approval to divest paper machine

Renewable packaging material provider BillerudKorsnäs has received approval from the EU Commission with regard to its proposed divestment of kraft and sack paper producing machine (PM2) to SwedPaper.

According to BillerudKorsnäs, the transaction, which was announced in May 2013, is conditional upon the approval from other relevant competition authorities before closing can take place.

In a bid to satisfy the conditions set by the commission for approval of the combination between Billerud and Korsnäs, an agreement was signed with SwedPaper concerning the machine divestment at the Gävle production unit in Sweden.

In 2012, production at PM2 accounted for about 2% of the company’s total combined sales volume.

The sale will not affect other operations at the unit, which will remain in BillerudKorsnäs’ ownership.

The divestment is expected to complete during the third quarter of 2013, the company said.