<B>SCA Acquisition of Metsae Expected to See EU Scrutiny</B>

Svenska Cellulosa AB expects the European Commission to open a four-month investigation into its purchase of a majority stake in Metsae Tissue Oyj, said Chief Executive Sverker Martin-Loef, according to an article in Bloomberg.

Europe's largest tissue maker offered to scale back its business to win antitrust clearance for the purchase. Loef said measures involve selling production capacity and brands in tissue.

The EU declined to disclose the concessions. The offer pushes back the ruling date to Sept. 26. By offering concessions during the initial one-month review, companies hope to solve any antitrust concerns and avoid an extended four-month investigation.

Svenska Cellulosa is buying the stake from Metsae-Serla Oyj in exchange for its stake in Modo Paper AB. Last month Metsae- Serla won EU approval to buy Modo Paper after offering to sell its share in Grafisk Papper AB to alleviate antitrust concerns.