Stora Enso will separate its Swedish forest assets into a new publicly listed company through a demerger expected to complete in the first half of 2027. The new company will hold over 1.2 million hectares of forest land in Sweden, with a fair value of $5.7 billion as of 30 September 2025, forming Europe’s largest listed pure-play forest company. All shares in the new entity will be distributed to Stora Enso shareholders, according to an announcement by Stora Enso.
The decision follows a strategic review launched in June 2025 and follows the recent divestment of 175,000 hectares of forest for $900 million.
Major shareholders Solidium Oy and FAM AB, collectively holding 21% of shares and 55% of voting rights, support the move. Stora Enso will retain its focus on renewable materials and packaging, while the new company will pursue value through forest management, renewable energy, and carbon sequestration.
A long-term wood supply agreement of 18 years will link the two companies, with Stora Enso securing approximately 9% of its Nordic wood and fiber supply from the new entity.
Tuomas Hallenberg, currently Executive Vice President of Stora Enso’s Forest business, has been appointed President and CEO of the new forest company. The demerger remains subject to shareholder and regulatory approvals.
