Oct 10, 2014. /Lesprom Network/. As earlier communicated, Stora Enso signed an agreement in May 2014 to divest its Uetersen specialty and coated fine paper mill in Germany to Brigl & Bergmeister, an Austrian specialty paper producer. Stora Enso recorded a negative non-recurring item of approximately Euro 34 million related to the planned disposal in the 2Q 2014 operating profit.

In September, the German Federal Cartel Office (FCO) indicated intentions to prohibit the proposed merger. Despite further evidence provided by the parties to clear the concerns of the FCO, the authorities’ assessment remained. Consequently, Brigl & Bergmeister withdrew the application for the merger on 9 October. The parties have agreed to terminate the share purchase agreement.

As a consequence, Stora Enso will reverse the loss on disposal of approximately Euro 28 million as a positive non-recurring item in its 3Q 2014 operating profit.

Stora Enso will now evaluate its options, which may include divestment or restructuring of the loss-making Uetersen Mill. This process does not affect the speciality paper production at Imatra Mill or the coated fine paper production at Oulu Mill in Finland.

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