Press Release: Mergers: Commission opens in-depth investigation into creation of “NewCo”, combining Munksjö and part of Ahlstrom

The European Commission has opened an in-depth investigation under the EU Merger Regulation into the planned combination into a new merged entity of Munksjö AB, a Swedish-based manufacturer of high value-added paper products, and the European label and processing business of Ahlstrom Corporation (ALP), a Finnish manufacturer of high performance materials.

The two entities would be transferred to a new company, "NewCo", through a series of transactions. The Commission's preliminary investigation indicated potential competition concerns in the markets of pre-impregnated paper ("PRIP") and abrasive paper backings, where NewCo would have high market shares both in the European Economic Area (EEA) and worldwide. The decision to open an in-depth inquiry does not prejudge the result of the investigation. The Commission now has 90 working days, until 29 April 2013, to take a final decision on whether the transaction would reduce effective competition in the EEA.