EU Approves SCA Acquisition

Paper manufacturer can acquire Georgia Pacific’s European tissue business, says EU commission.

July 17, 2012
Recycling Today Staff

The European Commission has approved SCA’s acquisition of the European tissue business of Georgia-Pacific (GP). The purchase was made for $1.635 billion (€1.32 billion) for operations with about 4,700 employees.

The acquisition is designed to strengthen Stockholm-based SCA’s position in the European tissue industry, according to an SCA news release in early July.

U.S.-based GP’s European tissue business, which consists of 15 plants in seven countries, will be transferred to SCA´s ownership in connection with the closing of the deal, which is expected July 20, 2012.

EU´s clearance requires the divestment of GP’s consumer tissue business in the U.K.(including production capacity), G-P´s Benelux consumer tissue branded business under the Lotus brand and some of G-P´s and SCA`s retailer branded business in Scandinavia (including production capacity).