Fondia Advises Sappi on JV Combining Graphic Paper Businesses with UPM Kymmene
Fondia has acted as Finnish counsel to Sappi Limited (“Sappi”) in establishing a joint venture with UPM-Kymmene Corporation (“UPM”) for graphic paper with a combined enterprise value of the respective businesses of €1,420 million, excluding the value of expected synergy benefits. The parties have announced the signing of binding agreements to form a non-listed, independent 50/50 Joint Venture, which proposes to bring together Sappi’s European Graphic Paper business with UPM’s Communication Papers business in Europe, the UK and the US. Sappi will contribute the following assets: Gratkorn Mill (Austria), Ehingen Mill (Germany), Maastricht Mill (The Netherlands), and Kirkniemi Mill (Finland).
The Joint Venture represents a fundamental and necessary step towards securing the long-term viability, competitiveness, and resilience of the European graphic paper industry and its customers by effectively rebalancing industrial capacities with the evolving market fundamentals/challenges.
The transaction remains subject to the fulfilment of a number of regulatory and other conditions.
Fondia has advised on the JV structure, governance and corporate law matters as well as various other Finnish law aspects of the transaction with close co-operation with the other multi-jurisdictional advisers.
Fondia’s team was lead by Susanne Mattsson (M&A and JV structure) and included Satu Relander (M&A and Energy), Anni Lammila (M&A and JV structure), Johanna Ellonen (Employment), Juho Tuomi (Environment), Nina Pohjola (Real Este), Milja von Fersen (Commercial), Sari Koskela (Privacy) and Karoliina Vesa (Privacy).
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