If the European Union gives approval, Finnforest Corporation will become Europe’s biggest producer of ‘mechanical’ forest products.
The company is waiting to hear whether its proposed takeover of Norwegian public limited company Moelven Industrier ASA is acceptable. If so, the combined turnover of the two would be nearly €2bn.
The merger would also create a major player in wood based building systems. As a producer of sawn timber, glulam and plywood, it would be Europe’s second biggest behind Stora Enso.
Moelven’s main business is sawmilling, machined timber products and building-system components.
Its three major shareholders have accepted Finnforest’s offer of NKr11.25 per share, for 41.5% of the company, valuing it at NKr1.34bn. A further 8.8% bought from the stock exchange will give Finnforest a controlling interest of 50.3%.
Reasons for acquiring Moelven include business consolidation, an opportunity for closer co-operation with Nordic forest owners, further expansion and guaranteeing sustainable forest management. Benefits are expected in logistics, marketing, customer service and e-commerce.
Finnforest president Ari Martonen, who hinted earlier this year of acquisitions while on a whistle stop tour of the UK and rest of Europe (TTJ February 3), said: ‘Moelven is a well-run company which has strengthened its results in recent years. It and Finnforest are Europe’s only engineered wood com-panies, which is a sound foundation from which to strive for market leadership in the European wood based solutions segment.’
Finnforest sells in the UK, Germany, France, Finland, eastern and central Europe, while Moelven operates mainly in Norway and Sweden.
