Reno De Medici is negotiating a possible combination with the European recycled cartonboard business of Canada’s Cascades that would give it a total capacity of more than 1Mt/year.
The merger would be structured in two steps: RdM and Cascades’ recycled cartonboard business in Blendecques, France, and Arnsberg, Germany, and its sheeting operations in Wednesbury, England; then Cascades’ virgin fibre cartonboard assets in La Rochette, France, and Djupafors, Sweden. After the merger, a new sales structure would manage jointly the sales of both companies. The new group headquarters would be in Milan.
“The new Reno De Medici would be a global leader with a brighter future than either company would have on its own,” according to Giuseppe Garofano, chairman of Reno De Medici.
Subject to reciprocal due diligence and approval by the directors of RdM and Cascades’ Italian subsidiary, the merger is expected to be effective by the end of 2007.
Cascades employs nearly 14,000 people in some 100 production units in North America and Europe. Reno De Medici has more than 1,100 employees and subsidiaries in Italy, France, Spain and Germany. In 2006, it posted revenues of €314M.