A planned merger between AssiDomän Timber and Mindab will create Europe’s fourth biggest timber company.
The deal was announced by Sveaskog, AssiDomän’s owner, and LRF and Skogsägarna Mellanskog, the two largest shareholders of Mindab.
The aim for the new company, which would become Sweden’s largest timber company, is to be a market leader for ‘appearance’ or joinery timber in selected quality segments in Europe and Japan, with the emphasis on pine products. The merger is also a response to Sweden’s fragmented sawmill industry.
Mindab, which has annual sales of SKr2.5bn, has eight distribution sites, five sawmills, two planing plants, a glulam factory and a specialist facility, while AssiDomän Timber has eight sawmills and two processing plants and a SKr2.9bn annual turnover.
The merger is dependent on the outcome of the ‘due diligence’ process and a review by competition authorities. A final agreement is expected to be signed early July, with completion by August/September.
